1. Where, before the presentation of a petition for the winding up of a company by the Tribunal, a resolution has been passed by the company for voluntary winding up, the winding up of the company shall be deemed to have commenced at the time of the passing of the resolution, and unless the Tribunal, on proof of fraud or mistake, thinks fit to direct otherwise, all proceedings taken in the voluntary winding up shall be deemed to have been validly taken.
2. In any other case, the winding up of a company by the Tribunal shall be deemed to commence at the time of the presentation of the petition for the winding up.
Legal Commentary & Landmark Judgments: Section 357
Section 357 of the Companies Act, 2013 establishes the relation-back doctrine in corporate insolvency, enacting that the winding up of a company by the Tribunal is deemed to commence on the exact date of presentation of the winding-up petition.
In litigation challenging alienations of corporate property, plead the date of petition presentation under Section 357 to establish that transactions executed pendente lite are void ab initio. Conversely, if defending bona fide commercial dispositions made during the petition's pendency, move an urgent validation application before the Tribunal demonstrating commercial necessity and fair consideration.