The provisions of Section 531 and 545 have been set out in detail
above. The procedures for misfeasance, malfeasance and inspection
and investigation have been set out in detail. The powers of the
official liquidator for investigation are stipulated in Section
457, which have been discussed above. Powers of discovery and
reporting are available to the official liquidator and the liability
of the former directors is provided for under Sections 538 to
545 of the Companies and also discussed above.
The company court can summon the directors and detailed rules
are prescribed for reporting to the company court for failure
to perform duties in relation to the affairs of a company in winding
up and for past conduct.
Rules 281 to 285 stipulate the procedures for termination of
winding up. As soon as the affairs of the company has been fully
wound up the official liquidator has to file a final account in
the court and apply for the dissolution of the company subject
to the final accounts being approved by the court. The official
liquidator has to pay the balance into a public account post distribution
made.
The provisions of Section 551 deal with the conclusion of winding
up. The conclusion takes place on the date when the order for
winding up has been reported to the Registrar of Companies and
the surplus, post distribution or unclaimed or undistributable
amounts are delivered to the company's liquidation account in
the Reserve Bank of India.
The liquidator or the court suo moto can initiate the termination
of the insolvency procedure.
