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The Companies Act, 2013

Chapter XX - Winding Up (270 - 365)

Section 332- Effect of floating charge.

Section 332 notified with effect from 15.12.2016 vide S.O. 3676 (E) dated 07.12.2016]

Section 332- Effect of floating charge. [Corresponds to Section 534 of the Companies Act, 1956]

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.