Section 360 of CA 2013 : Section 360: Powers And Functions Of Official Liquidator

Explanation using Example

Imagine a company called "Tech Innovations Ltd." is undergoing compulsory liquidation as ordered by the National Company Law Tribunal (NCLT). The Central Government appoints an Official Liquidator to handle the winding-up process. In accordance with Section 360 of the Companies Act, 2013, the Official Liquidator has the authority to:

• Sell the company's assets and use the proceeds to pay off creditors;
• Investigate any suspicious transactions that may have occurred before the liquidation;
• Conduct an inquiry into the conduct of the company's directors if there are allegations of fraud or misconduct.

During the liquidation process, the Official Liquidator discovers that the directors of "Tech Innovations Ltd." may have been involved in fraudulent activities. The NCLT directs the Official Liquidator to conduct a thorough investigation into the matter. The Official Liquidator, exercising his powers under Section 360(2)(b) of the Companies Act, 2013, carries out the investigation and reports the findings to the Tribunal for further action.