Q. WINDING UP OF A SOLVENT COMPANY

Question

WE GOT ONE ASSIGNMENT TO WINDUP A SOLVENT COMPANY. WE ARE NOT CLEAR ,WHETHER IT NEEDS TO BE EXECUTED THROUGH AN IBC PROFESSIONAL OR WE CAN DIRECTLY GO FOR WINDING UP.

WE STUDIED SO MANY STUDY REFERENCES AND CONSULTED FEW PROFESSIONALS,BUT WE ARE NOT CLEAR ABOUT THE EXACT PROCEDURE.PLEASE GUIDE

Answer 1

Hi Nitin ji,

Your example is a case of Voluntary Winding up of a company. You can directly reach NCLT with petition for voluntary winding off. Solvent means company either have no debt or able to repay all debt by realised value of assets.

You need to appoint Official Liquidator for company who will submit report to Tribunal (NCLT). Once satisfied, tribunal will order for dissolution of the company.

Regards,
CA Rahul Gupta
E: rahul@mrt-ca.in