Section 326 — Power to summon persons suspected of having property of company

(1) The Court may, at any time after the appointment of a provisional
manager or the making of winding up order, summon before it any officer of the
company or person known or suspected to have in his possession any property or
books or papers of the company, or known or suspected to be indebted to the
company, or any person whom the Court deems capable of giving information
concerning the promotion, formation, trade, dealings, books or papers, affairs or
property of the company.

(2) The Court may examine a person sum moned under sub-section (1)
on oath concerning the matters aforesaid, either by word of mouth or on written

interrogatories, and may reduce his answers to writing and require him to sign them.
(3) The Court may require a person summoned under sub-section (1) to
produce any books and papers in his custody or power relating to the company, but,
where he claims any lien on books or papers produced by him, the production shall
be without prejudice to that lien, and the Court shall have jurisdiction in the winding
up to determine all questions relating to that lien.
(4) If any person so summoned, after being paid or tendered a
reasonable sum for his expenses, fails to come before the Court at the time
appointed, not having a lawful impediment made known to the Court at the time of
its sitting and allowed by it, the Court may cause him to be apprehended and
brought before the Court for examination.
(5) If, on his examination, any officer or person so summoned adm its
that he is indebted to the company, the Court may order him to pay to the
provisional manager or, as the case may be, the liquidator, at such time and in such
manner as the Court may direct, the amount in which he is indebted, or any part
thereof, either in full discharge of the whole amount or not, as the Court thinks fit,
with or without costs of the examination.
(6) If, on his examination, any such officer or person admits that he has
in his possession any property belonging to the company, the Court may order him
to deliver to the provisional manager or, as the case may be, the liquidator that
property or any part thereof, at such time, in such manner and on such terms as the
Court may direct.
(7) Orders made under sub-sections (5) and (6) shall be executed in the
same manner as decrees for the payment of money or for the delivery of property
under the Code of Civil Procedure, 1908 (Act V of 1908), respectively.
(8) Any person making any payment or delivery in pursuance of an
order made under sub-section (5) or sub -section (6) shall by such payment or
delivery be, unless otherwise directed by such order, discharged from all liability
whatsoever in respect of such debt or property.