This document discusses the delivery of property under the Code of Civil Procedure (CPC) in India. It notes that Section 51(1) of the CPC and Order XXI provide for the delivery of specifically decreed property to satisfy a decree. For immovable property, actual possession is given by removing occupants bound by the decree under Rule 35, while symbolic possession is given through notices under Rule 36 if the property is occupied by a tenant. For movable property, Rule 31 allows for seizure and delivery of specific property, while Rule 79 concerns delivery of auctioned movable property to the purchaser. Case law has upheld actual possession under Rule 35 versus symbolic possession under Rule 36. In conclusion, delivery of property is an important way to
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Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
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1. DEPARTMENT OF LAW
PRESTIGE INSTITUTE OF MANAGEMENT AND
RESEARCH
Topic – Delivery Of Property
Submitted To: Submitted By:
Mr. Gopal Kag Annanya Shukla
2. INTRODUCTION
• Section 51(1) of the CPC says :
• That the Court has the power to order
execution of the decree, on the application of
the decree-holder, by delivery of any property
specifically decreed.
• Provisions in Order XXI provide for delivery
of property under CPC.
4. IMMOVABLE PROPERTY
• Order XXI Rule 35 states that where the
decree is for delivery of any immoveable
property, possession of such property shall be
delivered to the party to whom it has been
adjudged, or to the person who has been
appointed by that party to receive the delivery
on his behalf, and, if necessary, by removing
any person bound by the decree who refuses to
vacate the land.
5. • Order XXI Rule 36 states that where a decree is
for delivery of any immovable property that is in
the occupancy of a tenant or any other person who
is entitled to occupy such property and is not
bound by the decree to relinquish such occupancy,
the Court shall make an order for delivery by
affixing a copy of the warrant in some
conspicuous place on the property, and by
proclamation to the occupancy by beating of the
drums or any other customary mode at some
convenient place, the substance of the decree in
regard to the property.
6. MOVABLE PROPERTY
• Order XXI Rule 79 reads that where a
moveable property is to be sold, of which
actual seizure has been made, it shall be
delivered to the purchaser. Where a moveable
property is in the possession of some person
other than the judgment debtor, the delivery to
the purchaser shall be made after giving the
notice to the person in possession prohibiting
him to deliver the property to any other person
except the purchaser.
7. • Order XXI Rule 31 provides that where the
decree is for any specific moveable property or
for any share in such property, it may be
executed by the seizure of that property or
share and by delivery to the party to whom it
has been adjudged, or to such person who is
appointed for receiving delivery on his behalf.
8. CASE LAW
• In the case of Mumtaz Jehan v. Insha Allah, it was held
that under Rule 35(1) actual possession is delivered by
removing all persons bound by the decree and Under
Rule 36, symbolic possession is delivered where the
property is in occupancy of the tenants entitled to
occupy and not bound by the decree to deliver
possession.
9. CONCLUSION
• Delivery of property is an important way
of satisfying the decree that is passed in
favor of a decree-holder.
• A decree for delivery of movable
property is granted under Rule 31 while
Rule 35 and 36 deals with decree
granting immovable property.