The Companies Act, 1956
495. Duty of liquidator to call creditors’ meeting in case of insolvency.
(1) If, in the case of a winding up commenced after the commencement of this Act, the liquidator is at any time of opinion that the company will not be able to pay its debts in full within the period stated in the declaration under section 488, or that period has expired without the debts having been paid in full, he shall forthwith summon a meeting of the creditors, and shall lay before the meeting a statement of the assets and liabilities of the company.
(2) If the liquidator fails to comply with such-section (1), he shall be punishable with fine which may extend to 1[five thousand rupees].
1. Subs. by Act 53 of 2000, sec. 196, for “five hundred rupees” (w.e.f. 13-12-2000).