Section 372. Power of Court to stay or restrain proceedings
Effective from 15-12-2016
The provisions of this Act with respect to staying and restraining suits and other legal proceedings against a at any time after the presentation of a petition for winding up and before the making of a winding up order, shall, in the case of a company registered in pursuance of this Part, where the application to stay or restrain is by a creditor, extend to suits and other legal proceedings against any of the company.
Inserted vide The Insolvency and Bankruptcy Code, 2016. To view the amendment,Click Here
Company means a company incorporated under this Act or under any previous company law
Contributory means a person liable to contribute towards the assets of the company in the event of its being wound up.
Explanation.—For the purposes of this clause, it is hereby clarified that a person holding fully paid-up shares in a company shall be considered as a contributory but shall have no liabilities of a contributory under the Act whilst retaining rights of such a contributory