Winding up by the Court

Section 53 of the Insurance Act, 1938 deals with winding up by the Court. The Tribunal may order the winding up in accordance with the Companies Act, 1956 (1 of 1956) of any insurance company and the provisions of that Act shall, subject to the provisions of this Act, apply accordingly.] [Explanation. The Act came into force on 01 Jul 1939.

¹[(1) The Tribunal may order the winding up in accordance with the Companies Act, 1956 (1 of 1956) of any insurance company and the provisions of that Act shall, subject to the provisions of this Act, apply accordingly.]

²[Explanation. --For the purpose of sections 53 to 61A, "Tribunal" means the National Company Law Tribunal constituted under sub-section (1) of section 408 of the Companies Act, 2013 (18 of 2013).]

(2) In addition to the grounds on which such an order may be based, the ³[Tribunal] may order the winding up of an insurance company--

(a) if with the sanction of the ³[Tribunal] previously obtained a petition in this behalf is presented by shareholders not less in number than one tenth of the whole body of shareholders and holding not less than one-tenth of the whole share capital or by not less than fifty policy-holders holding policies of life insurance that have been in force for not less than three years and are of the total value of not less than fifty thousand rupees; or

(b) if the ⁴[Authority], who is hereby authorised to do so, applies in this behalf of the ³[Tribunal] on any of the following grounds, namely: --

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(ii) that the company having failed to comply with any requirement of this Act has continued such failure ⁶[or having contravened any provision of this Act has continued such contravention] for a period of three months after notice of such failure ⁶[or contravention] has been conveyed to the company by the ⁴[Authority],

(iii) that it appears from ⁷[any returns or statements] furnished under the provisions of this Act or from the results of any investigation made thereunder that the ⁸[company is, or is deemed to be insolvent], or

(iv) that the continuance of the company is prejudicial to the interest of the policy-holders ⁹[or to the public interest generally].

Section 53, The Insurance Act, 1938 (Act 4 of 1938).