Services offered for winding up under the Insolvency and Bankruptcy Code (IBC) with the National Company Law Tribunal (NCLT) or court typically include:
Legal Consultation and Strategy:
Petition Preparation and Filing:
Representation and Advocacy:
Appointment of Liquidator:
Creditor Claims Management:
Litigation Support:
Compliance and Reporting:
Closure and Dissolution:
Post-Winding Up Services:
Strategic Advice on Rehabilitation or Reorganization:
Financial Statements: Comprehensive financial statements, including balance sheets, profit and loss accounts, cash flow statements, and other relevant financial documents up to the date of winding up initiation.
Creditors' Claims: Detailed information about creditors, including the amount of claims filed by each creditor, whether admitted or disputed, and any settlements or negotiations with creditors.
Asset Details: Disclosure of all assets owned by the company, including tangible assets (such as property, equipment) and intangible assets (such as intellectual property rights).
Liabilities: Disclosure of all outstanding liabilities, including debts, loans, and obligations to creditors, employees, and other stakeholders.
Operations and Business Activities: Description of the company's operations, business activities, and reasons leading to the decision for winding up.
Employee Information: Details regarding employees, including outstanding dues, provident fund contributions, gratuity, and other employee benefits.
Management and Director Information: Information about the board of directors, management team, their roles, responsibilities, and any actions taken during the winding-up process.
Legal Proceedings: Disclosure of any ongoing or pending legal proceedings involving the company, including litigation, arbitration, disputes, or claims.
Winding-Up Petition: This is the formal application filed with the NCLT or court seeking an order for winding up the company under the IBC.
Affidavit in Support: An affidavit supporting the winding-up petition, usually signed by one of the directors or a key stakeholder of the company.
Statement of Affairs: A comprehensive statement of the company's assets and liabilities, prepared up to a specified date close to the filing of the petition.
Resolution of Board of Directors: A resolution passed by the board of directors of the company authorizing the filing of the winding-up petition.
Audited Financial Statements: The latest audited financial statements of the company, including balance sheet, profit and loss account, and cash flow statement.
Appointment of Liquidator: If applicable, documents related to the appointment of a liquidator to oversee the winding-up process.
Proof of Service: Evidence that the winding-up petition has been served to all relevant parties, such as creditors, shareholders, and regulatory authorities as required.
Minutes of General Meetings: Minutes of any general meetings where decisions related to winding up were discussed or approved by shareholders.
Notice of Resolution: If applicable, a notice of the resolution passed by creditors or shareholders approving the winding up of the company.
Indemnity and Security: If required by the NCLT or court, an indemnity and security for costs may need to be provided.
Power of Attorney: A power of attorney authorizing a legal representative to act on behalf of the company in winding-up proceedings.
Any Other Jurisdiction-Specific Documents: Depending on the jurisdiction and specific circumstances of the case, additional documents may be required by the NCLT or court.
What does "winding up" mean under the IBC?
Winding up refers to the process of liquidating a company's assets, paying off creditors, and distributing any remaining funds to shareholders, ultimately leading to the dissolution of the company.
Who can file for winding up under the IBC?
Creditors, shareholders, or the company itself can file for winding up under the IBC if it is unable to pay its debts or if it is just and equitable to wind up the company.
What is the process for filing a winding-up petition?
The process involves preparing a winding-up petition supported by a statement of affairs, board resolution, and other necessary documents, and filing it with the NCLT or relevant court.
What happens after a winding-up petition is filed?
The NCLT or court will hear the petition, verify claims, appoint a liquidator if necessary, and issue a winding-up order if the grounds for winding up are established.
How long does the winding-up process take?
The duration varies depending on factors such as the complexity of the case, creditor claims, and legal proceedings. It can range from several months to over a year.
Can the company be revived after filing for winding up?
In some cases, if creditors and stakeholders agree and the NCLT or court approves, the company may be revived or rehabilitated instead of being wound up.
What are the implications of a winding-up order?
Once a winding-up order is issued, the company ceases to carry on its business activities, and a liquidator takes charge of selling assets, settling debts, and distributing proceeds to creditors and shareholders.
