interim measure for winding up
Foreman of a chitcompany died.The process for winding up given to the court now it was pending with the court more than 40 days.Tne nominee of the foreman facing hurdles from subscribers.Any legal interim measure is there to close the company before orders.
Answer framed by Sammanika Rawat, Lawfarm Researcher:
We are sorry to tell you that there is no shortcut method under the law whereby you can avail a speedy wind up of your chit-company. Winding up takes time. As per the law, a chit may continue as per the chit agreement even after the death of a Foreman. Winding up procedure can be completed only after proper approval from the court. That is the reason, the legislation demands the Chit Agreement to have a clause defining the manner in whit chit shall function after the death of the Foreman. An interim measure is generally requested when one of the parties has objections to the winding up procedure and hence court grants an interim relief. We do not think you are looking to stop the winding up procedure and hence a request for an interim order shall be further detrimental to the subscribers only. We request you to kindly wait for the final order as the law itself says that an order for winding up shall operate in favour of all the subscribers to whom amounts are due from the chit. It is understandable that due to the ongoing festive season, there might have been delays in court proceedings, however you must explain to the subscribers that the winding up order shall be deemed to have commenced from the time of the presentation of the winding up application and hence they must not worry about any further loss. Feel free to write back.
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