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Section 359: Appointment of Official Liquidator

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 2013
Section 358 All 470 Sections of Companies Act Section 360
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 359

Section 359 of the Companies Act, 2013 authorizes the Central Government to appoint Official Liquidators and subordinate officers as whole-time civil servants dedicated to discharging winding-up functions under the supervision of the Tribunal.

  • Central Government Appointment Power: The Central Government may appoint as many Official Liquidators, Joint, Deputy, or Assistant Official Liquidators as it considers necessary for discharging winding-up functions.
  • Status as Whole-Time Civil Officers: All Official Liquidators and subordinate officers appointed under this section are whole-time officers of the Central Government, holding statutory offices under public law.
  • Exchequer-Funded Remuneration: The salaries, allowances, and establishment costs of the Official Liquidator and supporting officers and employees are paid directly by the Central Government out of public revenue.
Key Landmark Precedents:
  • Official Liquidator, U.P. & Uttarakhand v. Allahabad Bank, (2013) 4 SCC 381: The Supreme Court held that the Official Liquidator is an officer of the court and a statutory functionary tasked with protecting corporate assets for equitable distribution among creditors and contributories.
  • Official Liquidator v. Dayanand, (2008) 10 SCC 1: The Supreme Court detailed the constitutional status and recruitment framework of the Official Liquidator's establishment, reaffirming that company-paid staff do not automatically become Central Government civil servants.
  • S.P. Anand v. Registrar of Companies, AIR 2002 Del 168: Clarified that the Official Liquidator operates under the administrative discipline of the Central Government while answering directly to the judicial directions of the Company Court/Tribunal in liquidation proceedings.
Courtroom Practice & Strategic Litigation Guidance:

When challenging actions of the Official Liquidator, determine whether the grievance relates to administrative misconduct (actionable before the Ministry of Corporate Affairs / Central Government) or judicial administration of the company's assets (requiring directions from the NCLT under Section 360).

Section 358 All 470 Sections of Companies Act Section 360