POINTS

EXPLANATION

1. Appointment of official liquidator:
 

For the purposes of winding up of a company by the Tribunal, the Tribunal at the time of the passing of the order of winding up, shall appoint an Official Liquidator or a liquidator from the panel maintained (i.e. under the Insolvency Professional registered under Insolvency and Bankruptcy Code, 2016) as the Company Liquidator.

2. Appointment of Provisional Liquidator or the Company Liquidator by Tribunal:
 

The provisional liquidator or the Company Liquidator, as the case may, shall be appointed by the Tribunal from amongst the insolvency professionals registered under the Insolvency and Bankruptcy Code, 2016.

3. Tribunal may restrict the powers of a Provisional Liquidator:

Where a provisional liquidator is appointed by the Tribunal, the Tribunal may limit and restrict his powers by the order appointing him or it or by a subsequent order, but otherwise he shall have the same powers as a liquidator.

4. Tribunal to specify the terms and conditions of appointment of Provisional Liquidator:
 

The terms and conditions of appointment of a provisional liquidator or Company Liquidator and the fee payable to him or it shall be specified by the Tribunal on the basis of task required to be performed, experience, qualification of such liquidator and size of the company.

5. Filing of Declaration by Liquidator on Appointment:

On appointment as provisional liquidator or Company Liquidator, as the case may be, such liquidator shall file a declaration within seven days from the date of appointment in the prescribed form disclosing conflict of interest or lack of independence in respect of his appointment, if any, with the Tribunal and such obligation shall continue throughout the term of his appointment.

6. Appointment of Provisional Liquidator as the Company Liquidator

While passing a winding up order, the Tribunal may appoint a provisional liquidator, if any, appointed under clause (c) of sub-section (1) of Section 273, as the Company Liquidator for the conduct of the proceedings for the winding up of the company.

POINTS

EXPLANATION

1. Removal of Provisional Liquidator or the Company Liquidator:
 

The Tribunal may, on a reasonable cause being shown and for reasons to be recorded in writing, remove the provisional liquidator (PL) or the Company Liquidator (CL), as the case may be, as liquidator of the company on any of the following grounds, namely:

1. Misconduct.
2. Fraud or misfeasance.
3. Professional incompetence or failure to exercise due care and diligence in performance of the powers and functions.
4. Inability to act as provisional liquidator or as the case may be, Company Liquidator.
5. Conflict of interest or lack of independence during the term of his appointment that would justify removal.

2. Transfer of work of Liquidator:

In the event of death, resignation, or removal of the provisional liquidator or as the case may be, Company Liquidator, the Tribunal may transfer the work assigned to him or it to another Company Liquidator for reasons to be recorded in writing.

3. Recovery of loss or damage from Liquidator:
 

Where the Tribunal is of the opinion that any liquidator is responsible for causing any loss or damage to the company due to fraud or misconduct, misfeasance or failure due to exercise due care and diligence in the performance of his or its powers and functions, the tribunal may recover or cause to be recovered such loss or damage from the liquidator and pass such other orders as it may think fit.

4. Reasonable opportunity of being heard to be given the Provisional Liquidator:

The Tribunal shall, before passing any order under this section, provide a reasonable opportunity of being heard to the provisional liquidator or, as the case may be, Company Liquidator.