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) In addition to the grounds on which such an order may be based, the 2 [Tribunal] may order the winding up of an insurance company-
(a) if with the sanction of the 2 [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 3 [Authority], who is hereby authorised to do so, applies in this behalf of the 2 [Tribunal] on any of the following grounds, namely:-
(i) that the company has failed to deposit or to keep deposited with the Reserve Bank of India the amounts required by section 7 4 [or section 98],
(ii) that the company having failed to comply with any requirement of this Act has continued such failure 5 [or having contravened any provision of this Act has continued such contravention] for a period of three months after notice of such failure 5 [or contravention] has been conveyed to the company by the 3 [Authority],
(iii) that it appears from 6 [any returns or statements] furnished under the provisions of this Act or from the results of any investigation made thereunder that the 7 [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 8 [or to the public interest generally].
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1. Substituted by Companies (Second Amendment) Act, 2002, section 133 and Schedule, for sub-section "(1) The Court may order the winding up in accordance with the Indian Companies Act, 1913 (7 of 1913) of any insurance company and the provisions of that Act shall, subject to the provisions of this Act, apply accordingly."
2. Substituted by the Companies (Second Amendment) Act, 2002, section 133 and Schedule, for "Court".
3. Substituted by Act 47 of 1950, section 4, for "Superintendent of Insurance" (w.e.f. 1-6-1950) and again Substituted by Act 41 of 1999, section 30 and Schedule I, for "Controller" (w.e.f. 19-4-2000).
4. Inserted by Act 11 of 1939, section 21.
5. Inserted by Act 13 of 1941, section 37 (w.e.f. 8-4-1941).
6. Substituted by Act 62 or 1968, section 23, for "the returns" (w.e.f. 1-6-1969).
7. Substituted by Act 62 of 1968, section 23, for "company is insolvent" (w.e.f. 1-6-1969).
8. Inserted by Act 62 of 1968, section 23 (w.e.f. 1-6-1969).