Section 231 Power of Tribunal to enforce compromise or arrangement – Companies Act 2013

Amended and updated notes on section 231 of Companies Act 2013. Discussion on provisions related to power of Tribunal to enforce compromise or arrangement.

Amended and updated notes on section 231 of Companies Act 2013. Detail discussion on provisions and rules related to power of Tribunal to enforce compromise or arrangement.

Chapter XV (Sections 230240) of the Companies Act, 2013 (CA 2013) deals with the provisions related to Compromises, Arrangements and Amalgamations. Section 231 of CA 2013 provides for power of Tribunal to enforce compromise or arrangement.

Recently, we have discussed in detail section 230 (Power to compromise or make arrangements with creditors and members) of CA 2013. Today, we learn the provisions of section 231 of Companies Act 2013.

The provisions of section 231 are effective from 15-Dec-2016. You may refer Notification No. S.O. 3677(E) issued dated 7-12-2016. In this article, you will learn detail of the provisions of section 231 of the Companies Act 2013 read with the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.

Name of ActThe Companies Act 2013
Enacted byParliament of India
Administered byMinistry of Corporate Affairs (MCA)
Number of Chapters29
Number of Sections484 (470-43+57)
Number of Schedules7
You are reading:
Chapter No.XV
Chapter NameCompromises, Arrangements and Amalgamations
Section No.231
Section NamePower of Tribunal to enforce compromise or arrangement
Monthly Updated EditionCompany Law PDF

Section 231 of Companies Act 2013: Power of Tribunal to enforce compromise or arrangement

Section 231 shall come into force on 15th December, 2016 vide Notification No. S.O. 3677(E) dated 07.12.2016.

(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.

Exception/ Modification/ Adaptation:
In case of Government Companies for the word “Tribunal”, wherever it occurs, the words “Central Government” shall be substituted. –Notification No. G.S.R. 582(E) dated 13th June, 2017.


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