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The Companies Act, 1956

Winding up of Unregistered Companies ( Section 582 to Section 590)

Section 588 Directions as to property in certain cases.

Section 588 Directions as to property in certain cases.

(1) If an unregistered company has no power to sue and be sued in a common name, or if for any reason it appears expedient, the Tribunal may, by the winding up order or by any subsequent order, direct that all or any part of the property, movable or immovable (including actionable claims), belonging to the company or held by trustees on its behalf, shall vest in the Official Liquidator by his official name; and thereupon the property or the Part thereof specified in the order shall vest accordingly.  

(2) The Official Liquidator may, after giving such indemnity, if any, as the Tribunal may direct, bring or defend in his official name any suit or legal proceeding relating to that property, or which it is necessary to bring or defend for the purpose of effectually winding up the company and recovering its property.