Where an order has been made for winding up, or a provisional liquidator has been appointed for, a company2(20) Company means a company incorporated under this Act or under any previous company law registered in pursuance of this Part, no suit or other legal proceeding shall be proceeded with or commenced against the company or any contributory2(26) 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 of the company in respect of any debt of the company, except by leave of the Tribunal2(90) Tribunal means the National Company Law Tribunal constituted under section 408 and except on such terms as the Tribunal may impose.
valid as on 20/10/2026
