6 Provisional Liquidator

(1) Appointment of Provisional Liquidator -

(i) Tribunal may by an order appoint either Official Liquidator or a liquidator from the panel maintained by the Central Government as Provisional Liquidator. An order appointing a provisional liquidator shall be in Form No. 7 and the intimation of such appointment of a provisional liquidator shall be in Form No. 8 within a period of seven days from the date of passing of the order alongwith a copy of the petition, copy of Statement of Affairs and the affidavit, if any, filed in support thereof.

(ii) The Provisional Liquidator who is appointed from the panel shall file a declaration inForm No. 9 making disclosures in accordance with sub section (6) of section 275. Thereafter, on the order of the Tribunal as per sub section (1) of section 283, the Provisional Liquidator shall forthwith take into his custody or under his control all the properties, effects, actionable claims and books and papers of the company, and it shall be the duty of all persons having custody of any of the property, books and papers of the company, to deliver possession thereof to the Provisional Liquidator.

(iii) Subject to any order of the Tribunal, all the costs, charges and expenses incurred by the Provisional Liquidator shall be paid out of the assets of the company.

(iv) Every Provisional Liquidator appointed from the panel, shall before entering upon his duties as such liquidator, furnish security of such sum and in such manner as the Tribunal may direct. The cost of furnishing the required security shall be borne by the liquidator and shall not be charged against the assets of the company as an expense incurred in winding up. Such security shall be provided through Form No.10.

(v) If the Tribunal is of the opinion that the security furnished by the liquidator under clause (iv) above is inadequate, the Tribunal may require the liquidator to furnish additional security. Where the security furnished is excessive, the liquidator may apply to the Tribunal for reducing the amount of security, and the Tribunal may make such order thereon as it think fit.

(2) Rules applicable to Provisional Liquidator - In pursuance of sub-section (3) of section 275, the rules relating to Company Liquidators shall apply to Provisional Liquidators, so far as applicable, subject to such variations as the Tribunal may direct in each case.