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Section 353: Liquidator to make returns, etc

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Section 352 All 470 Sections of Companies Act Section 354
Statutory Defined Terms in this Section: (Click any term for official legal definition)
Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 353

Section 353 of the Companies Act, 2013 provides a summary enforcement mechanism empowering the Tribunal to compel a defaulting Company Liquidator to file overdue returns, accounts, or notices within fourteen days, imposing costs and penal sanctions.

  • Fourteen-Day Statutory Notice: A creditor, contributory, or Registrar may serve a formal notice requiring the liquidator to make good any default in submitting accounts, returns, or notices required by law.
  • Summary Tribunal Enforcement: If the liquidator fails to rectify the default within fourteen days of notice, the Tribunal may, on application, make an order directing the liquidator to make good the default within a specified time.
  • Mandatory Personal Cost Surcharge: The Tribunal's order may direct that all costs of and incidental to the application shall be borne personally by the defaulting liquidator, without recourse to company assets.
Key Landmark Precedents:
  • Central Bank of India v. Official Liquidator, (2004) 121 Comp Cas 621 (Bom): Held that Section 353 (and its predecessor Section 556) provides a summary statutory remedy to ensure liquidator accountability without requiring a full suit for removal.
  • Official Liquidator v. K.S. Shenbagamoorthy, (1996) 87 Comp Cas 485 (Mad): Held that the Tribunal possesses summary authority to enforce compliance with statutory returns and will impose costs personally on defaulting liquidators who neglect statutory filing duties.
  • Re: Western Counties Steam Bakeries and Milling Co., [1897] 1 Ch 617: Foundational decision affirming that officers and liquidators failing to render timely accounts to the court are subject to direct supervisory orders and personal cost liabilities.
Courtroom Practice & Strategic Litigation Guidance:

Before petitioning the Tribunal under Section 353, counsel must serve a formal 14-day statutory requisition on the liquidator by registered speed post and email detailing the specific unfiled returns (such as Section 348 statements). After the 14th day, file a Company Application annexing the delivery proof, praying for a time-bound compliance order and personal cost surcharge against the liquidator.

Section 352 All 470 Sections of Companies Act Section 354