1. If the winding up of a company is not concluded within one year after its commencement, the Company Liquidator shall, unless he is exempted from so doing either wholly or in part by the Central Government, within two months of the expiry of such year and thereafter until the winding up is concluded, at intervals of not more than one year or at such shorter intervals, if any, as may be prescribed, file a statement in such form containing such particulars as may be prescribed, duly audited, by a person qualified to act as auditor of the company, with respect to the proceedings in, and position of, the liquidation,
a. in the case of a winding up by the Tribunal, with the Tribunal; and
b. in the case of a voluntary winding up, with the Registrar:
Provided that: no such audit as is referred to in this sub-section shall be necessary where the provisions of section 294 apply.
2. When the statement is filed with the Tribunal under clause (a ) of sub-section (1 ), a copy shall simultaneously be filed with the Registrar and shall be kept by him along with the other records of the company.
3. Where a statement referred to in sub-section (1 ) relates to a Government company in liquidation, the Company Liquidator shall forward a copy thereof—
a. to the Central Government, if that Government is a member of the Government company;
b. to any State Government, if that Government is a member of the Government company; or
c. to the Central Government and any State Government, if both the Governments are members of the Government company.
4. Any person stating himself in writing to be a creditor or contributory of the company shall be entitled, by himself or by his agent, at all reasonable times, on payment of the prescribed fee, to inspect the statement referred to in sub-section (1 ), and to receive a copy thereof or an extract there from.
5. Any person fraudulently stating himself to be a creditor or contributory under subsection (4 ) shall be deemed to be guilty of an offence under section 182 of the Indian Penal Code, and shall, on the application of the Company Liquidator, be punishable accordingly.
6. If a Company Liquidator contravenes the provisions of this section, the Company Liquidator shall be punishable with fine which may extend to five thousand rupees for every day during which the failure continues.
7. If a Company Liquidator makes wilful default in causing the statement referred to in sub-section (1 ) audited by a person who is not qualified to act as an auditor of the company, the Company Liquidator shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to one lakh rupees, or with both.
Legal Commentary & Landmark Judgments: Section 348
Section 348 of the Companies Act, 2013 mandates that if winding up is not concluded within one year of commencement, the Company Liquidator must submit periodic audited statements regarding the proceedings and financial position of the liquidation.
Counsel representing dissatisfied creditors should obtain certified copies of the Liquidator's Section 348 statements from the NCLT or RoC registry. If the liquidator has failed to file returns for over a year, file a petition under Section 353 to compel filing and seek expedited distribution or removal of the liquidator.