Section 303 and Section 304 of the Companies Act 2013

Section 303 deals with appeals from winding-up orders made before commencement of the Companies Act, 2013. Section 304, which formerly dealt with circumstances in which a company could be wound up voluntarily, has been omitted with effect from 15 November 2016 following the Insolvency and Bankruptcy Code, 2016.

Current legal position: Section 303 continues in the Companies Act, 2013. Section 304 and the former Part II provisions on voluntary winding up were omitted by section 255 and the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016 with effect from 15 November 2016.

Section 303 - Appeals from orders made before commencement of Act

Section 303 is a transitional provision concerning winding-up proceedings that existed immediately before commencement of the Companies Act, 2013. Its purpose is to preserve the operation and enforcement of qualifying pre-commencement court orders and the appellate forum applicable to such orders.

Statutory provision in substance:

Nothing in the relevant Chapter affects the operation or enforcement of an order made by a Court in winding-up proceedings immediately before commencement of the Act. An appeal against such an order is to be filed before the authority that was competent to hear that appeal before such commencement.

Meaning and effect of Section 303

The section protects continuity in older winding-up matters. It prevents commencement of the Companies Act, 2013 from disturbing an existing winding-up order merely because the statutory framework changed. It also preserves the competent appellate authority for an appeal against such an order.

Section 304 - Circumstances in which company may be wound up voluntarily

Section 304 originally formed part of Part II of Chapter XX of the Companies Act, 2013 dealing with voluntary winding up. The section is no longer operative. It was omitted by section 255 and the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016 with effect from 15 November 2016.

Important: The old Section 304 should not be presented as a presently operative route for voluntary winding up. Current corporate insolvency and voluntary liquidation matters must be considered under the law presently applicable to the particular company and proceeding, including the Insolvency and Bankruptcy Code, 2016 and applicable regulations.

Why Section 304 was omitted

The Insolvency and Bankruptcy Code, 2016 reorganised the legal framework governing insolvency and liquidation of corporate persons. As part of that change, section 255 and the Eleventh Schedule amended the Companies Act, 2013 and omitted its former Part II provisions concerning voluntary winding up, including Section 304.

Official legal resources

For the latest statutory text and amendments, refer to the Ministry of Corporate Affairs - Companies Act, 2013, the India Code portal, and the Insolvency and Bankruptcy Board of India - legal framework.

This page explains the statutory position for general legal information. The applicable procedure can depend on the date and nature of the winding-up or liquidation proceeding.