Section 361 of the Companies Act, 2013
Section 361 of the Companies Act, 2013
📘 Summary Procedure for Liquidation
🔹 Full Text of Section 361:
(1) Where the Tribunal has made a winding up order under section 273 in respect of a company, it may, if it considers it just and beneficial for the company, direct that the winding up of the company shall be conducted in a summary way.
(2) In case of winding up under summary procedure, the following conditions shall apply:
(a) the company must have assets of book value not exceeding ₹1 crore, and
(b) the Company Liquidator shall perform functions and duties as directed by the Tribunal.
(3) The Central Government may prescribe procedures, restrictions, and modifications applicable to such summary winding up.
✅ Explanation:
Section 361 allows for a simplified (summary) winding-up process when the company’s assets are limited.
🧾 Key Points:
Applicable only when a Tribunal orders winding up under Section 273.
Tribunal may order summary procedure if:
It is just and beneficial to do so.
The book value of assets is not more than ₹1 crore.
A Company Liquidator is appointed to handle the process.
The Central Government has power to make rules for the procedure.
🏛️ Purpose:
To save time and costs for smaller companies with limited assets by avoiding a full winding-up procedure.
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