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Summary of Companies Act 2016 Section 404
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Section 404 Overview
Section 404 of the Companies Act, 2016, pertains to the powers and procedures related to the winding-up of companies, specifically addressing the liquidation process and the role of the Court and Official Liquidator. It forms part of the broader framework for winding-up procedures under the Act, replacing similar provisions from the Companies Act, 1956. -
Main Points and Insights
- Winding-up Process: Under Section 404, the winding-up of a company involves the liquidation of assets and distribution of proceeds to creditors and shareholders.
- Role of Court and Liquidator: The Court appoints a Liquidator, who takes control of the company's assets and affairs. The Court retains supervisory powers over the liquidation process, including approving schemes and ensuring compliance with legal requirements.
- Powers of the Liquidator: The Liquidator is empowered to realize assets, settle claims, and distribute funds in accordance with the law.
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Procedural Aspects: The Act specifies the filing of petitions for winding-up, notice requirements, and the role of the Court in overseeing the process, including approval of schemes for amalgamation or restructuring (as seen in references to Sections 230-232 of the Companies Act, 2013, which align with the provisions under the 2016 Act).
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Analysis and Conclusion
Section 404 consolidates the legal framework for winding-up companies under the Companies Act, 2016, emphasizing the Court's supervisory role and the powers vested in the Liquidator. It ensures a structured and transparent liquidation process, protecting the interests of creditors, shareholders, and other stakeholders. The section aligns with the overarching objective of winding-up procedures to realize assets, settle liabilities, and dissolve companies efficiently, replacing older provisions from the Companies Act, 1956.
References:
- M/S JUST4KIDS SERVICES PRIVATE LIMITED vs M/S FUSION COSMECEUTICS PRIVATE LIMITED - National Company Law Tribunal: Discusses approval of schemes under the Companies Act, 2013, related to amalgamation and winding-up procedures.
- FUSION COSMECEUTICS PRIVATE LIMITED vs JUST4KIDS SERVICES PRIVATE LIMITED - National Company Law Tribunal: Details the merging of companies and the application of Sections 230-232 of the Companies Act, 2013, relevant to winding-up and amalgamation.
- Mr. Nirej V Paul VS M/s. The Canning Industries Cochin Limited - National Company Law Tribunal: Mentions powers under Sections 242 of the Companies Act, 2013, corresponding to Sections 402-404 of the 1956 Act, highlighting the Court’s authority in oppression and mismanagement cases.
- H.M.TAMBOURINE vs BANGALORE DEVELOPMENT AUTHORITY - Karnataka: Cites the role of the Court under Sections 241 and 242 of the Companies Act, 2013, in addressing oppression and winding-up issues.
- A.MADHAVAN NAMBIAR,
vs
K.S.VENKATARAMAN, - Kerala: Describes liquidation procedures, including the role of the Official Liquidator under Sections 445-456 of the Companies Act, 1956, and their continuity under the 2016 Act.
- Kamlesh Trading Company VS Kiran Processors Private Limited - Gujarat: Explains the stages of winding-up under the Companies Act, 2013, and the Court’s ongoing control over proceedings, aligning with the provisions of Section 404.
Search Results for "Companies Act 2016 s 404"
2025 Supreme(Online)(NCLT) 685 • India - National Company Law Tribunal
SH. HARNAM SINGH THAKUR, SH. SHISHIR AGARWAL, JJ
(A) Companies Act, 2013 - Sections 230-232 - Composite Scheme of Amalgamation - Approval granted to the Scheme between the Petitioner ... Act. ... Transferor Company and Non-Petitioner Companies with 100% consent from shareholders - The Tribunal found no objection from the Regional ... Companies Act, 1956. ... Honasa Consumer Limited (hereinafter referred to as “the Non- Petitioner Transferee Company”), having CIN L74999DL2016PLC306016 issued from the Registrar of Companies#H....
2025 Supreme(Online)(NCLT) 2701 • India - National Company Law Tribunal
MANNI SANKARIAH SHANMUGA SUNDARAM, MEMBER (JUDICIAL), ATUL CHATURVEDI, MEMBER (TECHNICAL)
Companies Act, 2013 , and other applicable provisions of the Companies Act, 2013 , the entire Business and Undertaking of each of the Transferor Companies will be merged and amalgamated into and with the Transferee Company. ii.
2018 Supreme(Online)(NCLT) 1194 • India - National Company Law Tribunal
By exercising powers conferred on the Tribunal under section 242 of the Companies Act, 2013 (Correspondence to sections 402, 403 and 404 of the 1956 Act), TCP. ... The petitioners had filed the above said petition under Sections 111, 111A, 397, 398, 402, 403 and 406 of the Companies Act, 1956 and Section 59 of the Companies Act, 2013 for oppression and mismanagement in the affairs of M/s. ... In the light of the above ground, we are of the view that ....
2017 0 Supreme(AP) 494 • India - Andhra Pradesh
M.S.RAMACHANDRA RAO
Companies Act, 1956 – Sections 111A, 237, 397, 398, 402, 403, 404 and 406 - Companies Act,2013 - Sec.58 ... Act, 1956 r/w Section 241 and 242 of the Companies Act, 2013 to pass orders for bringing to an end the oppression complained of ... illegal, null and void, the Board Meetings of the Company – Held, Courts powers under Section 10-F r/w Section 397 and 402 of the Companies ... and the CLB will treat the Company Petition as havin....
• India - Consumer
R.S.SHARMA, D.K.PODDAR, RUCHI GOEL
The complainant filed a complaint seeking compensation from the insurance companies. ... Final Decision: The court allowed the appeal, directing the insurance companies to pay Rs. 70,000 to the complainant within ... Insurance - Consumer Dispute - Consumer Protection Act, 1986 - Section 14 of The Limitation Act, 1963 - Rajeev Hitendra Pathak ... Achyut Kashinth Karekar, (2011) 7 SLT 404 : 2011 (9) SCC 541, Hon’ble Supreme Court observed thus: “35. We have carefully scrutinized the provisions of the Con....
2019 0 Supreme(Kar) 1112 • India - Karnataka
ALOK ARADHE
Constitution of India,1950 - Articles 226 & 227 - Companies Act, 2013 - Sections 58, 59, 241 and 242 - ... Rule 10(6) ,Companies (Registration Offices and Fees) Rules, 2014 - Companies Appointment and Qualification of Directors - Quash ... does not deserve acceptance as issue whether forms in question are defective or incomplete can be adjudicated by Registrar of Companies ... The respondent No.5 thereafter again made complaints on 25.03.2015, 20.04.2015, 28.04.2015, 08.02.2016, 1....
2024 Supreme(Online)(KAR) 19067 • India - High Court of Karnataka
Ratio Decidendi: The court relied on Section 2(7)(a)(i) of the Karnataka Town and Country Planning Act, 1961, to establish ... As per Section 2(7)(a)(i) of the Karnataka Town and Country Planning Act, 1961, the Bangalore Development Authority is the planning authority for the area comprising the City of Bengaluru. ... It is further contended that the BDA is the planning Authority as contemplated under the Karnataka Town and Country Planning Act, 1961 and it has jurisdiction to issue necessary modified plan and the same has been issued in....
2022 7 Supreme 991 • India - Supreme Court
INDIRA BANERJEE, A. S. BOPANNA
(Paras 45, 46 and 51) (B) Insolvency and Bankruptcy Code, 2016 – Section 53 – Gujarat Value Added Tax Act, ... dated 19th December, 2019, passed by National Company Law Appellate Tribunal (NCLAT) dismissing Company Appeal (AT)(Insolvency) No. 404 ... (A) Insolvency and Bankruptcy Code, 2016 – Section 30 – Corporate Resolution Plan – First charge over property ... The respondent, a company within the meaning of the Companies Act, 2013 is engaged in the business of manufacture and sale o....
2023 Supreme(Online)(KER) 13017 • India - High Court of Kerala
N. NAGARESH, J
Liquidation - Employee Claims - Companies Act, 1956 sections [445(3), 446(a), 456]; Industrial Disputes Act, 1947 section [33- ... No.404/1987 has become null and void under Section 446(a) of the Companies Act. 7. The Official Liquidator has rightly rejected the claim for want of substantial proof. ... When the Liquidation Order was passed on 13.10.1981, from that date the Company administration rest with the Official Liquidator as per Section 456 of the Companies #HL....
2022 0 Supreme(Guj) 225 • India - Gujarat
BHARGAV D.KARIA
Companies Act, 1956 - Sections 433, 434 and 439 - Winding up of company - Petition is filed for winding ... petition, nor Court has appointed provisional Liquidator - In view of above Company Petition along with Company Application No. 67 of 2016 ... Given the aforesaid scheme of winding up under Chapter XX of the Companies Act, 2013, it is clear that several stages are contemplated, with the Tribunal retaining the power to control the proceedings in a winding up petition even after it is admitted. ... ....
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