MCA notified the Companies (Liquidation) Rules 2020 (“Winding-up Rules”) on 24 January 2020, effective 1 April 2020. While “voluntary liquidation” and “liquidation for inability to pay debts” fall within the scope of the Insolvency and Bankruptcy (Indian) Act 2016 (“IBC”), the Liquidation Rules set out the liquidation procedure under Section 271 of the Companies Act, which prescribes the circumstances in which a company may be wound up by the NCLT. An order of the court to dissolve a company shall be published by the plaintiff within 14 days of the date of the order in a newspaper in English and in a newspaper in the national language widely circulated in the State or territory of the Union in which the company`s registered office is situated and shall be served on that person by the plaintiff. where applicable and in the manner ordered by the court, and the notice must be set out in WIN 14. Here are some of the important rules extracted from the Corporations (Liquidation) Rules, 2020 Note that the application for the appointment of a provisional liquidator of the corporation pending final resolutions on the application for liquidation pursuant to Article 273(1)(c) of ………… (indicate here whether it is a contributor or contributor, the commercial register or a person authorised by the central government or the state government and registered in the ……….. Day of the 20………… and that the said request for a hearing before the Court of First Instance on … Day of… 20………. (a) For the purposes of subsection (1) of section 272, an application for dissolution of a corporation must be filed by the eligible applicant on Form WIN-1 or WIN-2.In case if the application is filed by the corporation, it must be filed on Form WIN-2 and, in other cases, on Form WIN-1. The fact that the account seized marked with an “A” is a complete and truthful representation of my income and payments in connection with the liquidation of the aforementioned company from …..
Day of … 20 … At…. Day of .. 20…, including and that I and no other person have received or paid any monies on behalf of said Company through my order or for my use during this period, except and except as indicated and indicated in such account. The rules allow any of the following groups of companies to close their operations by filing a liquidation application with the central government without going to court. For the purposes of section 361, subsection (1) (ii), the class of corporations based on the most recent audited balance sheet is as follows: In addition, an application for leave to withdraw an announced winding-up application shall not be considered at any time before the date fixed in the notice of hearing of the application. The withdrawal of the application shall be admissible only after execution of the court order, including costs, and shall be published in the same manner as the original application. *If a resolution of the corporation on the winding-up was made prior to the filing of the winding-up application, the date of the winding-up decision must be replaced by the date of the resolution. Atul Pandey, a partner at Khaitan and Co, said the striking feature of the new rules notified by the MCA was the summary winding-up procedure introduced by Part V of the winding-up rules. By approving the central government for the liquidation of enterprises instead of NCLTs, it shortens the overall liquidation periods. 2.
Total payments to the bank, including the balance at the time of commencement of liquidation according to the bank book The rules are called the Corporations (Liquidation) Rules, 2020. (a) For the purposes of subsection (1) of section 277, the winding-up order is Form WIN-11. Akila Agarawal, Partner and Head of M&A, Cyril Amarchand Mangaldas & Co, expressed her opinion that liquidation proceedings have been ongoing for a very long time for reasons other than the inability to pay debts. With the introduction of the Companies (Liquidation) Rules 2020, it reduces the burden on the NCLT, so that the liquidation procedure can now be submitted to the central government. 1. The aforementioned company was located in the same* at the time of processing the order, namely………… Day of………… 20. and is fair and true to me [or me and C.D.
and E.F., my co-partners in trade or, as the case may be,] in the sum of Rs…………. for [here you specify a consideration, for example: Goods stored by me / my company between the data of………… were sold and delivered. or funds advanced by me/my company in connection with the bill of exchange mentioned below, or if applicable, as set out in the account in the table below. 5. If the court considers that the winding-up of the corporation is fair and equitable. According to Rule 190 of the Corporations (Liquidation) Rule, 2020 provides for the powers and duties of the official liquidator. Liquidation is the process by which a business is completed, assets are realized and debt payments are distributed.