Order of Tribunal and Appointment of Company Administrator
6 (1) On the date of hearing, if the Tribunal is satisfied that the creditors representing three-fourth in value of the amount outstanding against the sick company present and voting had resolved that it is not possible to revive and rehabilitate the sick company it may after giving the sick company an opportunity of being heard, by order direct the winding up of the sick company or if such requisite majority had resolved that by adopting certain measures it is possible to revive and rehabilitate the sick company, it may, by order, appoint a company administrator directing him to prepare a scheme of revival and rehabilitation for the sick company. The order of the Tribunal shall be in Form L if the Tribunal orders the winding up of the sick company and in Form M if the Tribunal orders to appoint a company administrator.
(2) The order appointing the company administrator may contain such directions to the company administrator including but not limited to taking a complete inventory of all assets and liabilities of the sick company; all books of account, registers, maps, plans, records, documents of title and all other documents of whatever nature.
(3) The company administrator shall give public notice of the order of the Tribunal, appointing him to prepare the scheme of revival and rehabilitation and if applicable, the order of the Tribunal directing him to take over the assets or the management of the sick company, in Form N at least once in a vernacular newspaperin the principal vernacular language of the district in which the registered office of the company is situated and circulating in that district and at least once in English in an English Newspaper within seven days from the date of receipt of certified copy of the order of the Tribunal.
(4) Within thirty days of the passing of the order appointing the company administrator, the company administrator shall file a certified copy of the order with the Registrar of Companies having jurisdiction over the registered office of the sick company.
(5) The sick company shall call a meeting of Board of Directors within seven days of appointment of the company administrator to depute officer or officers to provide all assistance that the company administrator may require.
(6) The Tribunal shall determine the fee payable to the company administrator which shall be borne by the applicant; where there are two or more applicants, by all of them in such proportion as the Tribunal may direct.
(7) The company administrator shall be entitled to reimbursement of all costs, charges and expenses incurred by him subject to sanction by the Tribunal and shall be entitled to an advance on costs.
(8) The company administrator shall have the following powers:
(i) to have an office at the registered office of the sick company;
(ii) to visit all offices, branches, divisions, factories, godowns, and such other places where the affairs of the sick company are being or have been carried out as ascertained from the records of the sick company;
(iii) to access all information and inspect all books and papers, books of account, registers and records of the sick company at all places where the sick company has offices, branches, divisions, factories, godowns, and such other places where the affairs of the sick company are being or have been carried out as ascertained from the records of the sick company;
(iv) to issue notices to any director, secretary, officer, manager, creditor, debtor and call for any information or explanation as he may need for carrying out his duties;
(v) to obtain from any authority of the Central Government or any State Government or quasi-government or court or Tribunal or any other judicial forum copy of any record, return, document, plaint, pleading, or any other paper which in his opinion may assist him in effective performance of his duties;
(vi) to appoint experts with the approval of the Tribunal for the purpose of ascertaining the measures that are necessary to be taken for the revival and rehabilitation of the sick company, cost whereof shall be paid by the applicant;
(vii) to apply to the executive magistrate of the district for any protection that may be required for safeguarding himself and his assistants and assets and properties, books and records of the sick company;
(viii) to apply for extension of time for anything to be done under these rules within a stipulated time. |