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Section 280: Jurisdiction of Tribunal

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Section 279 All 470 Sections of Companies Act Section 281
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Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 280

Section 280 of the Companies Act, 2013 confers overriding, exclusive jurisdiction on the Tribunal to entertain and dispose of any suit, proceeding, claim, or question of priorities arising in or relating to the winding up of a company, notwithstanding any other law.

  • Non-Obstante Exclusive Jurisdiction: Notwithstanding any other statute, the Tribunal holds comprehensive jurisdiction to entertain and dispose of any suit or proceeding instituted by or against the company, whether commenced prior to or after the winding-up order.
  • Adjudication of Claims and Restructuring Schemes: Empowers the Tribunal to adjudicate any monetary claim by or against the company, entertain applications for fast-track mergers under Section 233, and sanction compromise schemes under Section 230.
  • Determination of Priorities and Questions of Law or Fact: Vests the Tribunal with wide authority to determine all questions of priority and all disputed questions of law or fact that relate to or arise in the course of winding up.
Key Landmark Precedents:
  • Sudarsan Chits (I) Ltd. v. O. Sukumaran Pillai, (1984) 4 SCC 657: The Supreme Court held that the non-obstante jurisdiction of the company court under Section 446(2) (now Section 280) creates a single-window clearing house to prevent the liquidator from being dragged to civil courts throughout the country.
  • Embassy Property Developments Pvt. Ltd. v. State of Karnataka, (2020) 13 SCC 308: The Supreme Court clarified that while the Tribunal has wide jurisdiction over civil, corporate, and contractual claims arising from winding up, it does not possess public law jurisdiction to issue writs against statutory administrative authorities.
Courtroom Practice & Strategic Litigation Guidance:

In winding up proceedings, the liquidator should file claims for debt recovery, breach of contract, and recovery of corporate assets directly before the NCLT under Section 280, rather than initiating suits before civil courts, thereby capitalizing on the expedited summary-cum-plenary powers of the Tribunal.

Section 279 All 470 Sections of Companies Act Section 281