📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    What happens to suits and other legal proceedings

    initiated by or against a company, to be registered under Part I of Chapter XXI of the Companies Act, which were pending at the time of its registration?
    A All pending suits and legal proceedings are automatically terminated upon registration of the company Correct Answer Incorrect Answer
    B The company can request a stay on all pending legal proceedings until further notice Correct Answer Incorrect Answer
    C All pending suits and legal proceedings can continue unaffected, as if the registration had not taken place Correct Answer Incorrect Answer
    D Either a or b or c Correct Answer Incorrect Answer

    Solution

    Section 370. Continuation of pending legal proceedings: All suits and other legal proceedings taken by or against the company, or any public officer or member thereof, which are pending at the time of the registration of a company in pursuance of this Part, may be continued in the same manner as if the registration had not taken place: Provided that execution shall not issue against the property or persons of any individual member of the company on any decree or order obtained in any such suit or proceeding; but, in the event of the property of the company being insufficient to satisfy the decree or order, an order may be in accordance with the provisions of this Act or of the Insolvency and Bankruptcy Code, 2016.

    Practice Next
    More Section test Accounts Questions
    ask-question