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Section231
The Companies Act, 2013

Power to Tribunal to enforce compromise or arrangement

In force From 01 Apr 2014 Act 18 of 2013 As on 15 Oct 2026

Act 18 of 2013 Ministry Corporate Affairs Enacted 29 Aug 2013 In force 01 Apr 2014 Instruments 1

Section 231 of the Companies Act, 2013 deals with power to Tribunal to enforce compromise or arrangement. Where the Tribunal makes an order under section 230 sanctioning a compromise or an arrangement in respect of a company, it (a) shall have power to supervise the implementation of the compromise or arrangement; The Act came into force on 01 Apr 2014.

(1) Where the Tribunal makes an order under section 230 sanctioning a compromise or an arrangement in respect of a company, it

(a) shall have power to supervise the implementation of the compromise or arrangement; and--

(b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper implementation of the compromise or arrangement.

(2) If the Tribunal is satisfied that the compromise or arrangement sanctioned under section 230 cannot be implemented satisfactorily with or without modifications, and the company is unable to pay its debts as per the scheme, it may make an order for winding up the company and such an order shall be deemed to be an order made under section 273.

(3) The provisions of this section shall, so far as may be, also apply to a company in respect of which an order has been made before the commencement of this Act sanctioning a compromise or an arrangement.

Section 231, The Companies Act, 2013 (Act 18 of 2013).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 230 Power to compromise or make arrangements with creditors and members
  2. s. 273 Powers of Tribunal

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. M H Infraprojects Private Limited & M H Packaging (India) Limited

    High Court 26 Jun 2018 Persuasive (High Court Single Bench) Company Application No. 106 of 2017 in Co. Pet. No. 25 of 2006 — Final Order 26.06.2018 (Gujarat HC — R.M. Chhaya J.)

    Court's Decision & Legal Precedent

    Where a scheme was sanctioned by the High Court under the 1956 Act, a post-notification s.231 Cos Act 2013 / NCLT route is not required for a limited modification to implement that legacy order — the High Court that sanctioned the scheme retains modification jurisdiction; RD’s no-objection to the merits of the modification is noted.

    On this section: Teaching fill on s.231 transition: enforcement/modification of pre-2013 High Court scheme orders stays with the sanctioning High Court rather than being forced into NCLT under s.231 for every amendment.

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Made under this section, and citing it

1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

All subordinate legislation

Questions about Section 231

What have the courts held on Section 231 of the Companies Act?

M H Infraprojects Private Limited & M H Packaging (India) Limited (26 Jun 2018) is the leading judgment on this section among those set out below: Teaching fill on s.231 transition: enforcement/modification of pre-2013 High Court scheme orders stays with the sanctioning High Court rather than being forced into NCLT under s.231 for every amendment.

How do I find court cases under Section 231 of the Companies Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 231, section 231 Companies Act, section 231 of the Companies Act. People searching for it also type companies act 2013 section 231. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with M H Infraprojects Private Limited & M H Packaging (India) Limited (26 Jun 2018).

What should I read with Section 231 of the Companies Act, and has it changed?

Its own text turns on section 230 (Power to compromise or make arrangements with creditors and members), section 273 (Powers of Tribunal), so none of them can safely be read on its own. The rules and notifications made under it are where it actually bites, and there is one: most recently Commencement notification dated 07.12.2016 (2016).

When did Section 231 of the Companies Act come into force?

Section 231 of the Companies Act, cited as Companies Act 231, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.