Disclaimer of Onerous Property (1) Where any part of the property of a company which is being wound up consists of— (a) land of any tenure, burdened with onerous covenants; (b)shares or stocks in companies; (c) any other property which is not saleable or is not readily saleable by reason of the possessor thereof being bound either […]

Effect of Floating Charge Where a company is being wound up, a floating charge on the undertaking or property of the company created within the twelve months immediately preceding the commencement of the winding up, shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except for the amount of any cash paid to the company at the

Liabilities and Rights of Certain Persons Fraudulently Preferred (1)Where a company is being wound up and anything made, taken or done after the commencement of this Act is invalid under section 328 as a fraudulent preference of a person interested in property mortgaged or charged to secure the company’s debt, then, without prejudice to any rights or liabilities arising,

Certain Transfers to be Void Any transfer or assignment by a company of all its properties or assets to trustees for the benefit of all its creditors shall be void.  

Transfers Not in Good Faith to be Void [Any transfer of property, movable or immovable, or any delivery of goods, made by a company, not being a transfer or delivery made in the ordinary course of its business or in favour of a purchaser or encumbrancer in good faith and for valuable consideration, if made

Fraudulent Preference (1) Where a company has given preference to a person who is one of the creditors of the company or a surety or guarantor for any of the debts or other liabilities of the company, and the company does anything or suffers anything done which has the effect of putting that person into a position which, in the event

Section 327 of the Companies Act, 2013 provides for the provisions related to Preferential Payments to Preferential Creditors, which reads as follows: Preferential payments (1) In a winding up, subject to the provisions of section 326, there shall be paid in priority to all other debts,— (a) all revenues, taxes, cesses and rates due from the company to the

Overriding Preferential Payments Provision Explanation Priority Debts In the winding up of a company under the Companies Act, certain debts are given priority. Debts in Priority These priority debts include workmen’s dues and a portion of debts due to secured creditors. Workmen’s Dues Workmen are defined as employees within the meaning of the Industrial Disputes Act, 1947.

Application of Insolvency Rules in Winding Up of Insolvent Companies Omitted] Amendment: (a) Omitted by Insolvency and Bankruptcy Code, 2016 Dated 15th November, 2016. – Original Content (b) The MCA Notification No. F.O. 3453(E) Dated 15th November, 2016, enforcing the related sections of Insolvency and Bankruptcy Code, 2016. Original Omitted Content– 325. (1) In the winding up of

Debts of all descriptions to be admitted to proof In every winding up (subject, in the case of insolvent companies, to the application in accordance with the provisions of this Act or of the law of insolvency), all debts payable on a contingency, and all claims against the company, present or future, certain or contingent,