Retrospective Effect of Order of the Winding-Up

Rama Kant


A winding-up of the company by the court comes into effect from the date of presentation of the petition. As a result, of this there are many affects. The company is terminated its power to dispose of its property. There is fixed status and liabilities of the contributories. The creditors are deprived of ordinary remedies against the company. It is the time to determine the validity or otherwise, of preferences of the floating charges given buy the company before winding-up. It must be kept in the mind that there may be same cases of retrospective also of winding-up.

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