valid as on 23/05/2018

Section 332. Effect of floating charge
Effective from 15-12-2016

Where a  is being wound up, a floating charge on the undertaking or property of the company created within the twelve months immediately preceding the commencement of the winding up, shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except for the amount of any cash paid to the company at the time of, or subsequent to the creation of, and in consideration for, the charge, together with interest on that amount at the rate of five per cent. per annum or such other rate as may be notified by the Central Government in this behalf.

Company means a company incorporated under this Act or under any previous company law

Enforcement Notification S.O. 3677(E) dated 07/12/2016


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