Sections 283 and 284 of the Companies Act, 2013: Custody of Company Property and Cooperation with Company Liquidator
Sections 283 and 284 form part of the winding-up framework under the Companies Act, 2013. Section 283 deals with custody, control, protection and preservation of company property after a winding-up order or appointment of a provisional liquidator. Section 284 requires promoters, directors, officers and employees connected with the company to cooperate with the Company Liquidator.
Updated: 17 September 2026
Section 283 - Custody of company's properties
Meaning and purpose: Section 283 is intended to place the company's property and records under effective control during winding up so that the assets can be protected and preserved for the winding-up process. The expression actionable claim generally refers to a claim to an unsecured debt or a beneficial interest in movable property not in the claimant's possession, subject to the governing law.
Section 283(1)
Where a winding-up order has been made, or a provisional liquidator has been appointed, the Company Liquidator or provisional liquidator, as applicable, is required, on the order of the Tribunal, to take into custody or control the property, effects and actionable claims to which the company is or appears to be entitled. Necessary steps must also be taken to protect and preserve the company's properties.
Section 283(2)
Irrespective of sub-section (1), all property and effects of the company are deemed to be in the custody of the Tribunal from the date of the winding-up order.
Section 283(3)
After a winding-up order, the Tribunal may, on an application by the Company Liquidator or otherwise, require a contributory, trustee, receiver, banker, agent, officer or other employee of the company to pay, deliver, surrender or transfer to the Company Liquidator any company money, property, books or papers in that person's custody or control, either immediately or within the time directed by the Tribunal.
Section 284 - Promoters, directors, etc., to cooperate with Company Liquidator
Meaning and purpose: Section 284 places an express duty on persons who manage, work for, or have been associated with the company to provide the assistance necessary for the Company Liquidator to perform statutory functions and duties.
Section 284(1)
Promoters, directors, officers and employees who are or have been in the employment of, acting for, or associated with the company must extend full cooperation to the Company Liquidator in the discharge of the liquidator's functions and duties.
Section 284(2) - Current amended procedure
If a person who is required to assist or cooperate under sub-section (1) does not do so, the Company Liquidator may apply to the Tribunal for necessary directions.
Section 284(3)
On receiving an application under sub-section (2), the Tribunal is required, by order, to direct the person concerned to comply with the instructions of the Company Liquidator and to cooperate in the discharge of the liquidator's functions and duties.
Practical effect of Sections 283 and 284
Read together, the two provisions support the preservation and administration of company assets during winding up. Section 283 focuses on securing property, effects, actionable claims, money, books and papers. Section 284 focuses on obtaining the human and informational cooperation required by the Company Liquidator. Where cooperation is withheld, the statutory route is an application to the Tribunal for directions under Section 284.
Official legal resources
For the authoritative and updated statutory text, refer to the Companies Act, 2013 on India Code. The Ministry of Corporate Affairs - Companies Act, 2013 is also an official reference. For the amendment to Section 284, see the Companies (Amendment) Act, 2020.
Legal note: This article is a general statutory reference. In an actual winding-up matter, the Companies Act, applicable rules, Tribunal orders and subsequent amendments or notifications should be checked as applicable to the facts and date of the proceeding.