Amended and updated notes on section 295 of Companies Act 2013. Detail discussion on provisions and rules related to payment of debts by contributory and extent of set-off.
Chapter XX (Section 270–365) of the Companies Act, 2013 (CA 2013) deals with the provisions related to winding up. Section 295 of CA 2013 provides for payment of debts by contributory and extent of set-off.
Recently, we have discussed in detail section 294 (Audit of Company Liquidator’s accounts) of CA 2013. Today, we learn the provisions of section 295 of the Companies Act 2013.
The provisions of section 295 are effective from 15th December, 2016. You may refer Notification No. S.O. 3677(E) issued dated 7-12-2016. In this article, you will learn detail of the provisions of section 295 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XX |
| Chapter Name | Winding Up |
| Section No. | 295 |
| Section Name | Payment of debts by contributory and extent of set-off |
| Monthly Updated Edition | Company Law PDF |
Section 295 of Companies Act 2013: Payment of debts by contributory and extent of set-off
Section 295 shall come into force on 15th December, 2016 vide Notification No. S.O. 3677(E) dated 07.12.2016.
(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.