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Section 360: Powers and functions of Official Liquidator

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Section 359 All 470 Sections of Companies Act Section 361
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 360

Section 360 of the Companies Act, 2013 defines the statutory duties, custodial authority, and dual-reporting accountability of the Official Liquidator in conducting winding-up proceedings under the direction of both the Central Government and the Tribunal.

  • Prescribed Statutory Authority: The Official Liquidator must exercise such powers and perform such duties as the Central Government prescribes through statutory rules and executive directives.
  • Tribunal-Conferred Powers: Without prejudice to Central Government rules, the Official Liquidator exercises all powers and performs all duties conferred or imposed by the Tribunal under the Act.
  • Conduct of Winding-Up Proceedings: The Official Liquidator is legally charged with conducting the entire liquidation proceeding, taking custody of assets, verifying proofs of debt, and executing distribution schemes.
Key Landmark Precedents:
  • Valji Khimji & Co. v. Official Liquidator of Hindustan Nitro Product (Gujarat) Ltd., (2008) 9 SCC 299: The Supreme Court held that the Official Liquidator acts in a fiduciary capacity as a trustee of corporate assets, and sales conducted by him under judicial sanction become final upon confirmation.
  • Subrata Roy Sahara v. Union of India, (2014) 8 SCC 470: The Supreme Court affirmed that statutory liquidators discharge quasi-public duties to safeguard capital and enforce the pari passu distribution principle.
  • Pankaj Mehra v. State of Maharashtra, (2000) 2 SCC 756: The Supreme Court held that the Official Liquidator holds all corporate property in custodia legis for the benefit of all creditors, barring unilateral extra-judicial attachments.
Courtroom Practice & Strategic Litigation Guidance:

Any person aggrieved by an omission or positive act of the Official Liquidator in administering corporate assets should file an application for directions before the NCLT under Section 360(2). Plead fiduciary breach, deviation from statutory asset valuation guidelines, or violation of Section 326/327 priorities to obtain interim restraint orders.

Section 359 All 470 Sections of Companies Act Section 361