Winding up order, if and when passed, relates back to the date of presentation of petition - Companies Law - U. No. 5/1/69‑CL-III,

U. No. 5/1/69 ‑ CL-III, dated 31 ‑ 3 ‑ 1971. Subject:- Winding up order, if and when passed, relates back to the date of presentation of petition In the case of a winding up by the court, the winding up is deemed to commence from the date of presentation of the petition for winding up. This means if and when order is made for winding up, it relates back to the date of the presentation of the petition. If no order for winding up is made and the winding up petition is dismissed, the date of presentation of the winding up petition has no relevancy. As such until winding up order is made, the company will have to comply with the requirements of the Act as are required of a company not wound up. In sub‑section (2) of section 441, the words shall be deemed of commence instead of shall commence indicate that although the winding up of company does not in fact commence at the time of the presentation of the petition, it nevertheless shall be taken to commence from that stage if and when the winding up order is made. Winding up is a process which begins after the court passes the order for winding up. Till such order is passed, there cannot be any winding up in fact.