Roll no 28 Manahil Khan (Topic: Official Liquidators).

OFFICIAL LIQUIDATORS
321. Appointment of official liquidator.
- (1) For the purpose of this Ordinance, so far as it relates to the
winding up of companies by the Court, the Court shall maintain, from
amongst persons recommended by the Commission, a panel of persons
from whom it shall appoint a provisional manager or official liquidator
of a company ordered to be wound up by the Court.
(2) In the order of winding up a company the Court shall appoint one or
more of the persons on the panel maintained as aforesaid to act as
official liquidator of the company and thereupon such person or
persons shall, unless, within three days of the communication of the
order, he or they inform or informs the Court of his or their inability.
322. Resignation, removal, filling up vacancies, etc., of official
Liquidator. –
(1) An official liquidator shall not resign or quit his office as official
Liquidators Before conclusion of the winding up proceedings except for
reasons of personal disability To the satisfaction of the Court Provided
that an official liquidator may at any time be removed by the Court for
Reasons to be recorded.
(2) Any vacancy in the office of an official liquidator shall be filled up by
the Court by the appointment of another person from the panel
maintained under section 321 And, until the person so appointed in his
stead takes charge, the outgoing official liquidator Shall, unless the
Court directs otherwise, continue to act as the official liquidator.
323. Remuneration of official liquidator. (1) An official liquidator, not
Being a salaried officer of Government or of the Court, shall be entitled
to such Remuneration by way of percentage of the amount realised by
him by disposal of assets or Otherwise as may be fixed by the Court
having regard to the amount and nature of the Work actually done and
subject to such limits as may be prescribed. Provided that different
percentage rates may be fixed for different types of assets And items.
(2) In addition to the remuneration payable under sub-section (1), the
Court May permit payment of a monthly allowance to the official
liquidator for meeting the Expenses of the winding up for a period not
exceeding twelve months from the date of the Winding up order.
324. Style of official liquidator.
An official liquidator shall be described by The style of the official
liquidator of the particular company in respect of which he acts, And
not by his individual name.
325. Appointment and powers of provisional manager.
(1) At any time After the presentation of winding up petition and
before the making of a winding up order, The Court may appoint a
person eligible for appointment as official liquidator under section 321
to be provisional manager.
(2) Before appointing a provisional manager, the Court shall give notice
to the Company and afford to it a reasonable opportunity to make its
representations, if any, Unless, for special reasons to be recorded, the
Court thinks fit to dispose with such notice
326. General provisions as to liquidators.-
(1) The official liquidator shall Conduct the proceedings in winding up
the company and perform such duties in reference Thereto as the Court
may impose
(2) The acts of a liquidator shall be valid, notwithstanding any defect
that May afterwards be discovered in his appointment or qualification:
Provided that nothing in this sub-section shall be deemed to give
validity to acts Done by a liquidator after his appointment has been
shown to be invalid.
327. Receiver not to be appointed of assets with liquidator.
A receiver Shall not be appointed of assets in the hands of a liquidator
except by, or with the Court.
328. Statement of affairs to be made to official liquidator.
(1) Where the Court has made a winding up order or appointed an
official liquidator or provisional Manager, there shall be made out and
submitted to the official liquidator or provisional Manager a statement
as to the affairs of the company in the prescribed form, verified by An
affidavit, and containing the following particulars, namely: -
(a) The assets of the company, stating separately the cash balance in
hand And at the bank, if any, and the negotiable securities, if any, held
by the Company.
(b) The debts and liabilities of the company.
329. Report by official liquidator.
In a case where a winding up order Is made, the official liquidator shall,
as soon as practicable after receipt of the statement to Be submitted
under section 328 and not later than thirty days, or such further period
not Exceeding thirty days as the Court may allow, from the date of the
winding up order Submit a preliminary report to the Court.
330. Custody of company’s property.
 (1) The provisional manager or Official liquidator, as the case may be,
shall take into his custody or under his control, all The books and
papers, property, effects and actionable claims belonging to or to which
the Company is or appears to be entitled; and all persons who are or
have been directors, Chief executives, managers, officers, servants,
bankers, auditors or agents of the company And who may be having in
their knowledge, custody, control or charge, directly or under Them any
such books or papers, property, effects and actionable claims, shall
forthwith Report and hand over or cause to be handed over possession
to the liquidator of all such Items and furnish to the liquidator such
information and explanations as he may require And any default or
failure on their part shall be punishable with imprisonment of either.
332. Constitution and proceedings of committee of inspection.
The committee shall meet at such times as it may from time to time
Appoint, and, failing such appointment, at least once a month, and the
liquidator or any Member of the committee may also call a meeting of
the committee as and when he Thinks necessary.
333. Powers of official liquidator.
Subject to any general or special direction of the Court or of the
Committee of inspection, the liquidator in winding up by the Court shall
have power: -
(a) To do all acts and to execute, in the name and on behalf of the
company, All deeds, receipts and other documents, and for that
purpose to use when necessary, the company’s seal
(b) To prove, rank and claim in the bankruptcy, insolvency or
sequestration of Any contributory for any balance against his estate,
and to receive Dividends in the bankruptcy, insolvency or sequestration
in respect of that Balance, as a separate debt due from the bankrupt or
insolvent, and Ratably with the other separate creditors.
334. Discretion of official liquidator.
The Court may provide by any order That the official liquidator may,
where there is no committee of inspection, exercise any of The powers
mentioned in paragraph (a) or paragraph (b) of sub-section (1) of
section 333 Without the sanction or intervention of the Court.
335. Provision for assistance to official liquidator.
The official liquidator May, with the sanction of the committee of
inspection or, where there is no committee of Inspection, with the
sanction of the Court, appoint a person entitled to appear before the
Court or such person as may be prescribed to assist him in the
performance of his duties. Provided that, where the official liquidator is
an advocate, he shall not appoint his Partner unless the latter consents
to act without remuneration.
336. Liquidator to keep books containing proceedings of meetings.
The official liquidator of a company which is being would up by the
Court shall keep, In the manner prescribed, proper books and papers in
which he shall cause to be made Entries or minutes of proceedings at
meetings and of such other matters as may be Prescribed, and any
creditor or contributory may, subject to the control of the Court,
Personally or by his agent inspect any such books.
337. Liquidator’s account.
(1) Every official liquidator shall, at such times As may be prescribed
but not less than twice in each year during his tenure of office, Present
to the Court an account of his receipts and payments and dealings as
liquidator, Together with such further information as may be
prescribed.
(2) The account and information as aforesaid shall be in the prescribed
form, Shall be made in duplicate, and shall be verified by a declaration
in the prescribed form.
(3) The Court shall cause the account and the books and papers of the
Official liquidator to be audited in such manner as it thinks fit and for
the purpose of the Audit the liquidator shall furnish the Court with such
books and papers and information as The Court may require, and the
Court may at any time require the production of and Inspect or cause to
be inspected any books or papers kept by the liquidator.