Companies Act, 2013
Companies Act, 2013
III — —Provisions applicable to every mode of winding up · Section 332

Effect of floating charge

Synced on 07 Jul 2026Text as per India Code

Where a company is being wound up, a floating charge on the undertaking or property of the company created within the twelve months immediately preceding the commencement of the winding up, shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except for the amount of any cash paid to the company at the time of, or subsequent to the creation of, and in consideration for, the charge, together with interest on that amount at the rate of five per cent. per annum or such other rate as may be notified by the Central Government in this behalf.

Judgments on Section 332