Section 243 – The Companies Act,1956

The Companies Act, 1956

243. Application for winding up of company or an order under section 397 or 398.

If any such company or other body corporate 1[***] is liable to be wound up under this Act and it appears to the Central Government from any such report as aforesaid that it is expedient so to do by reason of any such circumstances as are referred to in sub-clause (i) or (ii) of clause (b) of section 237, the Central Government may, unless 2[the company or body corporate,] is already being wound up by the 3[Tribunal] , cause to be presented to the 3[Tribunal] by any person authorised by the Central Government in this behalf

(a)a petition for the winding up of 2[the company or body corporate,] on the ground that it is just and equitable that it should be wound up;

(b)an application for an order under section 397 or 398;

(c)both a petition and an application as aforesaid.

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The intention of the Legislature as discernible from section 243 of the Companies Act seems to be that when the court is already seized of the matter, at the instance of a party, the Central Government should refrain from taking the initiative; Mool Chand v. Jagan Nath Gupta & Co. (P) Ltd., (1979) 4 SCC 729: AIR 1979 SC 1038.

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1. Certain words omitted by Act 53 of 2000, sec. 121 (w.e.f. 13-12-2000).

2. Subs. by Act 53 of 2000, sec. 121, for certain words (w.e.f. 13-12-2000).

3. Subs. by Act 11 of 2003, sec. 32, for “Court”.

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