Rules, 1959

[GSR 950, dated 17-8-1959]

Part I

1.         Short title and commencement.

2.         Interpretation.

3.         Proceedings to be neat and legible.

4.         Form of proceedings.

5.         Language of proceedings.

6.         Practice and procedure of the Court and provisions of the Code to apply.

7.         Power of Court to enlarge or abridge time.

8.         Computation of time.

9.         Inherent powers of Court.

10.       Applications how made.

11.       Petitions.

12.       Matters to be heard in open Court and in Chambers.

13.       Registers to be kept.

14.       Serial number of proceedings.

15.       Process to be sealed.

16.       Inspection and copies of proceedings.

17.       Forms.

18.       Affidavits.

19.       Form of Judge’s summons and service thereof.

20.       Issue of summons.

21.       Affidavit verifying petition.

22.       Enclosures to petition.

23.       Summons for directions.

24.       Advertisement of petition.

25.       Contents of advertisement.

26.       Service of petition.

27.       Notice of petition and time of service.

28.       Service on company.

29.       Petitioner to effect service.

30.       Affidavit of service.

31.       Procedure on default of compliance as regards advertisement and service of notice.

32.       Mode of service and service when deemed to be effected.

33.       Validity of service and of proceedings.

34.       Notice to be given by persons intending to appear at the hearing of petition.

35.       List of persons intending to appear, to be filed.

36.       Procedure at hearing of petition.

37.       Order to be drawn up.

Part II

Proceedings in matters other than


[Sections 17 to 19]

38.       Form of petition under section 17 and summons for directions.

39.       Directions at hearing of summons.

40.       Notice to Registrar of Companies and Central Government.

41.       Procedure where creditors are entitled to object.

42.       Order confirming alteration.

Confirmation of alteration in the constitution of a company

43.       Petition under section 579.

Issue of shares at a discount

[Section 79]

44.       Petition for sanctioning the issue of shares at a discount.

45.       Order sanctioning issue to be delivered to Registrar of Companies.

Reduction of share capital

[Sections 100 to 105]

46.       Form of petition for reduction of share capital and summons for directions.

47.       Procedure on hearing of summons.

48.       Directions at the hearing of summons.

49.       List of creditors.

50.       Affidavit verifying list of creditors.

51.       Inspection of list of creditors.

52.       Notice to creditors.

53.       Advertisement of petition and list of creditors.

54.       Affidavit of service.

55.       Affidavit by company as to the result of rules 52 and 53.

56.       Procedure where claim is not admitted, and proof of debt.

57.       Cost of proof.

58.       Certificate by the Judge as to creditors.

59.       Hearing of petition.

60.       Who may appear and oppose.

61.       Directions at hearing.

62.       Order on petition.

63.       Minute.

64.       Advertisement of reasons for reduction of capital.

65.       Form of minute and notice of registration.

Variation of rights of any class of shareholders

[Section 107]

66.       Petition to cancel variation of rights.

Compromise or arrangement under sections 391 to 394

67.       Summons for directions to convene a meeting.

68.       Service on company.

69.       Directions at hearing of summons.

70.       Proxies.

71.       Application for stay.

72.       Application to vacate or vary order of stay.

73.       Notice of meeting.

74.       Advertisement of the notice of meeting.

75.       Copy of compromise or arrangement to be furnished by the company.

76.       Affidavit of service.

77.       Result of the meeting to be decided by poll.

78.       Report of the result of the meeting.

79.       Petition for confirming compromise or arrangement.

80.       Date and notice of hearing.

81.       Order on petition.

82.       Application for directions under section 394.

83.       Directions at hearing of application.

84.       Order under section 394.

85.       Compromise or arrangement involving reduction of capital.

86.       Report on working of compromise or arrangement.

87.       Liberty to apply.

Relief in case of oppression or mismanagement

[Sections 397 to 407]

88.       Petition under section 397 or 398.

89.       Notice to Central Government.

90.       Order involving reduction of capital or alteration of memorandum.

91.       Application under section 407(1)(b) for leave to act as managing director, etc.


 [Section 560(6)]

92.       Notice to Registrar of Companies.

93.       Delivery of order and advertisement thereof.

94.       Registrar’s costs of petition.


Part III

Winding Up

Winding up by Court

Winding-up petition and its hearing

95.       Petition for winding-up.

96.       Admission of petition and directions as to advertisement.

97.       Petition by a contingent or prospective creditor.

98.       Copy of petition to be furnished.

99.       Advertisement of petition.

100.     Application for leave to withdraw petition.

101.     Substitution of creditor or contributory for original petitioner.

102.     Procedure on substitution.

103.     Affidavit in opposition.

104.     Affidavit in reply.

105.     Stay of suit or proceeding pending petition.

Provisional Liquidator

106.     Appointment of Provisional Liquidator.

107.     Rules applicable to Provisional Liquidator.

108.     Costs, etc., of Provisional Liquidator.

Winding-up order

109.     Notice to Official Liquidator of order.

110.     Contents of winding-up order and order appointing Provisional Liquidator.

111.     Order to be sent to Official Liquidator and form of order.

112.     Directions on making the winding-up order.

113.     Advertisement of the order.

114.     Official Liquidator to take charge of assets and books and papers of company.

115.     Form of proceedings after winding-up order is made.

116.     Application for stay of winding-up proceedings.

Applications under section 446.

117.     Application for leave to commence or continue suit or proceeding.

118.     Application for transfer of suit or proceeding.

Transfer of winding-up proceedings

119.     Application for transfer.

120.     Transmission of records upon transfer of proceedings.

121.     Proceedings to be re-numbered.

122.     Notice to Official Liquidator.

123.     Official Liquidator of Transferee Court to be Liquidator.

Statement of Affairs

124.     Notice to submit statement.

125.     Application by Official Liquidator under section 454(2).

126.     Preparation of statement of affairs.

127.     Form of the statement.

128.     Extension of time for submitting statement.

129.     Expenses of preparing the statement.

130.     Officers of company to attend and give information.

131.     Duty of person making or concurring in statement.

132.     Default in complying with section 454.

133.     Dispensing with statement of affairs.

134.     Liquidator in voluntary winding-up or winding-up subject to supervision, to submit statement.

Reports by official liquidator under section 455 and summons for directions

135.     Preliminary report by Official Liquidator.

136.     Inspection of statement and preliminary report.

137.     Further Report by Official Liquidator.

138.     Consideration of report by Court.

139.     Summons for directions to be taken out by Official Liquidator.

Committee of Inspection

140.     First meeting of creditors and contributories.

141.     Official Liquidator to report result of meeting and apply for directions.

142.     Application for order not to fill vacancy in Committee.

143.     Liquidator and members of the Committee dealing with company’s assets.

144.     Committee of Inspection not to make profit.

145.     Costs of obtaining sanction of Court.

146.     Order sanctioning payment to Committee.

Debts and claims against company

147.     Fixing a date for proving debts.

148.     Notice to creditors.

149.     Proof of debt.

150.     Mode of proof and verification thereof.

151.     Contents of proof.

152.     Workmen’s wages.

153.     Production of bills of exchange and promissory notes.

154.     Value of debts.

155.     Discount.

156.     Interest.

157.     Periodical payments.

158.     Proof of debt payable at a future time.

159.     Examination of proof.

160.     Official Liquidator’s right to summon any person in connection with the investigation.

161.     Oaths.

162.     Costs of proof.

163.     Acceptance or rejection of proof to be communicated.

164.     Appeal by creditor.

165.     Procedure where creditor appeals.

166.     Official Liquidator not to be personally liable for costs.

167.     Proofs and list of creditors to be filed in Court.

168.     List of creditors not to be varied.

169.     Notice of filing the list and inspection of the same.

170.     Procedure in the District Court regarding proof of claims.

171.     List of proofs and summons for directions.

172.     Direction at hearing of summons.

173.     Notice to be given to creditors.

174.     Settlement of list of creditors.

175.     Inspection of the list of creditors and the proofs filed.

176.     Expunging of proof.

177.     Procedure on failure to prove the debt within the time fixed.

178.     Right of creditor who has not proved debt before declaration of dividend.

179.     Payment of subsequent interest.

Settlement of the list of contributories in a winding-up by the Court

180.     Provisional list of contributories.

181.     Notice to be given of date of settlement of list.

182.     Settlement of the list.

183.     Certificate of final settlement to be filed in Court.

184.     Notice of settlement to contributories.

185.     Supplemental list of contributories.

186.     Variation of the list.

187.     Application by Official Liquidator for rectification of list.

188.     Application by contributory to vary the list.

189.     Official Liquidator not to be personally liable for costs.

190.     Settlement of the list of contributories in District Courts.

191.     Notice to be given of date of settlement.

192.     Settlement of the list.

193.     Supplemental list of contributories.

194.     Application for rectification of list.

195.     List of contributories consisting of past members.

196.     List of contributories under section 104(1)(b).

General meetings of creditors and contributories in a winding-up by Court and of creditors in a creditors’ voluntary winding-up

197.     ‘Court meetings’, ‘Liquidator’s meetings’ and ‘voluntary Liquidation meetings’.

198.     Application of Rules to meetings.

199.     Notice of meeting.

200.     Place and time of meeting.

201.     Notice of first or other meeting to officers of company.

202.     Proof of notice.

203.     Costs of calling meetings at instance of creditor or contributory.

204.     Chairman of meeting.

205.     Resolution at creditors’ meeting.

206.     Resolution at contributories’ meeting.

207.     Copies of resolutions to be filed.

208.     Non-receipt of notice by a creditor or contributory.

209.     Adjournments.

210.     Quorum.

211.     Procedure in the absence of quorum.

212.     When creditor can vote.

213.     Cases to which creditors may not vote.

214.     When secured creditor can vote.

215.     Effect of voting by a secured creditor.

216.     Procedure when secured creditor votes without surrendering security.

217.     Admission or rejection of proofs for purposes of voting.

218.     Minutes of proceedings.

219.     Report of Court meetings.

Proxies in relation to a winding-up by court and to
meetings of creditors in a creditors ’ voluntary winding-up

220.     Voting by proxies.

221.     Form of proxies.

222.     Proxies to Liquidator or Chairman.

223.     Use of proxies by deputy.

224.     Forms to be sent with notice.

225.     Proxies to be lodged.

226.     Holder of proxy not to vote on matter in which he is financially interested.

227.     Minor not to be appointed proxy.

228.     Filling in proxy where creditor or contributory is blind or incapable.

229.     Proxy of person not acquainted with English.

Attendance and appearance of creditors and contributories

230.     Attendance at proceedings.

231.     Representation of creditors and contributories before Court.

Collection and distribution of assets in a winding-up by court

232.     Powers of Official Liquidator.

233.     Official Liquidator to be in the position of a Receiver.

234.     Company’s property to be surrendered to Official Liquidator on requisition.

Calls in a winding-up by the court

235.     Calls by the Official Liquidator.

236.     Official Liquidator to realise uncalled capital.

237.     Application for leave to make call.

238.     Notice of application.

239.     Order granting leave to make a call and document making the call.

240.     Service of notice of call.

241.     Order for payment of call.

242.     Other moneys due by contributories.

Examination under sections 477 and 478

243.     Application for examination under section 477.

244.     Directions at hearing of summons.

245.     Examination on commission or by interrogatories.

246.     Service of the summons.

247.     Conduct of the examination.

248.     Notes of the deposition.

249.     Order for public examination under section 478.

250.     Notice of public examination.

251.     Adjournment of public examination to Court.

252.     Procedure for contumacy.

253.     Notes of examination.

254.     Shorthand notes of examination under sections 477 and 478.

255.     Application under section 478(7)(a).

256.     Default in attending examination under section 477 or 478.

257.     Prison to which person arrested on warrant is to be taken.

258.     Execution of warrant of arrest outside ordinary jurisdiction of Court.

259.     Public examination under section 519.

Applications against delinquent directors, promoters and officers of the company

260.     Applications under section 542 or 543.

261.     Directions at preliminary hearing of summons.

262.     Liberty to apply for further directions.


263.     Application for disclaimer.

264.     Preliminary hearing of the summons.

265.     Claimant to furnish statement of his interest.

266.     Service of notice.

267.     Order granting leave to disclaim.

268.     Disclaimer to be filed in Court.

269.     Vesting of disclaimed property.

Compromise or abandonment of claims

270.     No claim to be compromised or abandoned without sanction of Court.

271.     Application for sanction of compromise.

Sales by the official liquidator

272.     Sale to be subject to sanction and to confirmation by Court.

273.     Procedure at sale.

274.     Expenses of sale.

Dividends and returns of capital in a winding-up by Court

275.     Declaration of dividend or return of capital.

276.     Notice of declaration.

277.     Form of authority to pay dividend.

278.     Transmission of dividends by post.

279.     Form of order directing return of capital.

280.     Payment of dividend or return of capital due to a deceased creditor or contributory.

Termination of winding-up

281.     Official Liquidator to apply for dissolution.

282.     Dissolution of the company.

283.     Liquidator to pay the balance into public account.

284.     Conclusion of winding-up.

285.     Application to declare dissolution void.

Registers and books of account of the official liquidator

286.     Registers and Books to be maintained by the Official Liquidator.

Banking account of the official liquidator

287.     All moneys to be paid into the Reserve Bank.

288.     Bills, cheques and securities to be deposited into Bank.

289.     Payments into Bank under section 471.

290.     Official Liquidator’s Dividend Account.

291.     Fees to be credited to Central Government.

292.     Where the company has no available assets.

Investment of surplus funds

293.     Investment of moneys.

294.     Official Liquidator to examine the accounts for purposes of investment.

295.     Investments to be made by the Bank.

296.     Dividend and interest to be credited.

297.     Refunds of income-tax.

Filing and audit of the official liquidator’s accounts

298.     Half-yearly accounts to be filed.

299.     Form of account.

300.     Nil account.

301.     Registrar to send copy of account to the auditor.

302.     Audit of the Official Liquidator’s accounts.

303.     Audit certificate to be filed.

304.     Audit fees.

305.     Inspection of the account and certificate of audit.

306.     Account and auditor’s report to be placed before Judge.

307.     Legal assistance for the Official Liquidator.

308.     Employment of additional or special staff.

309.     Apportionment of expenses of common staff.

310.     Applications under section 463(2) and section 545(3).

311.     Annual statement by the Official Liquidator under section 551.

Voluntary winding-up and winding-up subject to supervision

312.     Applicability of Rules.

313.     Declaration of solvency in a members’ voluntary winding-up.

314.     Statement to be laid before meeting of creditors under section 495(1).

Liquidator in voluntary winding-up

315.     Notice of appointment of liquidator.

316.     Order for winding-up subject to supervision.

317.     Security by liquidator appointed by Court.

318.     Limit of remuneration of liquidator.

319.     Restriction on purchase of goods by liquidator.

320.     Office of liquidator vacated by his insolvency.

321.     Resignation of liquidator.

322.     Duty of liquidator upon resignation.

323.     Books to be kept by the liquidator.

324.     Banking account of the liquidator.

325.     Bills, cheques and securities to be deposited in Bank.

326.     Investment of surplus funds.

327.     Liquidator’s statements under section 551.

328.     Annual statement under sections 496(1)(b) and 508(1)(b).

329.     Notice convening final meeting and the account to be laid before the meeting.

330.     Consideration by Court of the statements under section 551 and the final account, in a winding-up subject to the supervision of the Court.

331.     Returns to Registrar of Companies.

332.     Inspection by creditor or contributory of statements filed by liquidator.

333.     Audit of the liquidator’s accounts.

334.     Applications under section 518.

Payment of unclaimed dividends and undistributed assets
into the companies liquidation account, in a winding-up

335.     Statement to accompany payment.

336.     Unclaimed dividends or undistributed assets under investment.

337.     Application by person for payment of money paid into the Companies Liquidation Account.

338.     Costs and expenses payable out of the assets in a winding-up by the Court.


Part IV

Costs and taxation of costs

339.     Taxation of costs in Bombay, Calcutta and Madras.

340.     Registrar to be Taxing Officer.

341.     Costs in the discretion of the Court.

342.     Costs to be taxed in accordance with the practice and procedure of the Court.

343.     All proper charges to be allowed.

344.     Contents of bill of costs.

345.     Vouchers to be filed.

346.     Time for lodging bill.

347.     Bill of costs by advocate or other person employed by Official Liquidator.

348.     Scale of advocate’s fees.

349.     Fees in misfeasance proceedings.

350.     Fees when proceeding is compromised.

351.     Fees to more than one advocate.

352.     Costs of parties having common interest.

353.     Court’s power to fix a fee.

354.     Reference to Judge in Chambers.

355.     Allowance to witnesses.

356.     Taxation between advocate and client.

357.     Review of taxation.

358.     Appeal against review.

359.     Certificate of taxation.


Part V


360.     Inspection of file.

361.     Saving of rules under Special Acts.