Position of Creditors on Restoration

Upon a certified copy of the order of the Court being delivered to the Registrar for registration, the company shall be deemed to have continued in existence as if its name had not been struck off.

Effect of Restoration
The effect of an order under this section is that the company is to be deemed to have continued in existence' as if its name had not been struck off'. The object is to put both the company and their parties in the same position as they would have occupied if the dissolution of the company had not intervened. Not only is the corporate existence of the company restored, but also it takes effect retrospectively, so that at the date of the restoration, it produces 'as you were' position [Tyman's Ltd. Vs. Craven (1952) 1 All ER 613].
Rights and liabilities of the company are not wiped out by its having been struck' off in the interim period [Purshottamdas Vs. Registrar of Companies, Maharashtra (1986) 60 Compo Cas. 154 (Born.)].

Position of Creditors on Restoration
Where a company is restored to the Register, the Court will make such order as will put the company and third parties in the same position as they would have occupied if no dissolution had intervened. As a defunct company can be restored at any time within twenty years, any contributory or other person interested, cannot try to defeat creditors by keeping quiet for some years until the creditors' claims get time-barred, and then apply to have the company restored, so that any available assets of the company may be taken by themselves without paying anything to the creditors.
In such a case the order restoring the company to the Register will also provide that in the case of claims of creditors which were not time-barred on the date of dissolution, the period between the date of dissolution and the date of restoration shall not be counted for purposes of the Limitation Act [Re, Kenyon Donald Ltd. (1956) 3 All
ER 596]. .

Appeal or Revision
There is no provision for appeal against an order restoring a company to the Register. But where an order is erroneous, it is open to revision [Surjan Das Vs. Chobla Co., AIR 1925 Lah. 443].
~ 25. Write a short note on Preferential Payments with respect to a company in winding-up.

.f1Lns .

Preferential Payments
In the event of winding-up, certain payments are to rank in priority to others. The payments to be so made first are called as 'preferential payments'. Such payments as per Section. 529 A and Section 530 are as follows:
Section 529A
1. Workmen's dues.
2. Debts due to secured creditors, to the extent such debts rank pari passu with
workmen's dues.