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Section 295 of Companies Act, 2013

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Section 295 of Companies Act, 2013 deals with Payment of debts by contributory and extent of set-off.

From the Act

(1) The Tribunal may, at any time after passing of a winding up order, pass an order requiring any contributory for the time being on the list of contributories to pay, in the manner directed by the order, any money due to the company, from him or from the estate of the person whom he represents, exclusive of any money payable by him or the estate by virtue of any call in pursuance of this Act.

(2) The Tribunal, in making an order, under sub-section (1), may,—

(a) in the case of an unlimited company, allow to the contributory, by way of setoff, any money due to him or to the estate which he represents, from the company, on any independent dealing or contract with the company, but not any money due to him as a member of the company in respect of any dividend or profit; and

(b) in the case of a limited company, allow to any director or manager whose liability is unlimited, or to his estate, such set-off.

(3) In the case of any company, whether limited or unlimited, when all the creditors have been paid in full, any money due on any account whatever to a contributory from the company may be allowed to him by way of set-off against any subsequent call.

Recent Cases / Related Cases / Case Laws

Related Sections from the Act

  • Section 290: Powers and duties of Company Liquidator
  • Section 291: Provision for professional assistance to Company Liquidator
  • Section 292: Exercise and control of Company Liquidator's powers.
  • Section 293: Books to be kept by Company Liquidator
  • Section 294: Audit of Company Liquidator's accounts

Chapters and Sections from the Indian Companies Act, 2013

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