12.Within 10 days of the passing of the resolution, file a notice with the e-Form 62 electronically with the concerned Registrar for the appointment of liquidator after paying a requisite fee as prescribed under Schedule X to the Companies Act, 1956 in the prescribed manner. Order for winding up to be communicated to official liquidator and registrarâwhere the Court makes an order for the winding up of a company the Court shall forthwith cause intimation thereof to be rent to the official liquidator and the registrar. However, they are quite different in their meanings. Dissertation: This is a mandatory course in which the choice of topic and title shall … The role of freedom of speech and privacy with regards to media. [Section 496], Where the case falls under item 21, the meeting of creditors is also required to be like wisely called except, in case of the meeting at the end of the first year where the same shall not be required to be called unless the meeting held under item 20 hereof has been held more than 3 months before the end of the year. b. General remarks.....323. The dissertation is pursued by independent research with individual supervision. Incorporating UNCITRAL Model on Cross-Border Insolvency in India: Winding-up/liquidation is used to realise the debtorâs assets for distribution to its creditors and members. Powers of the Court in Case of Voluntary Winding Up, 5.8.1. Fraudulent preferences or transfers made during the insolvency or transfer of shares are voided. If an execution process returns unsatisfied or if the courts determines that the company is unable to pay its debts then it can order the winding up of a company after notice has been properly issued. I have developed a keen interest in Corporate Law over the years and read a variety of publications to keep my knowledge up to date. If however the insolvency results in rehabilitation and restoration of the companyâs health then a scheme for rehabilitation under Section 391/394 has to be passed and the sanction order passed by the Company Court there under terminates the insolvency. 20 hereof then call the creditors meeting also. A railway company incorporated by an Act of Parliament or other Indian law or any Act of the British Parliament; A company registered underÂ the Companies Act, 1956; A company registered under any previous company laws. Part III of the Company Court Rules are extensive and Rules 95 to 338 dealing with all aspects of the liquidatorâs functioning and the procedural rules in the inter-action of the official liquidator and the Company Court, as also with unsecured and secured creditors. Mutuku, N., 2011. Corporate tax avoidance is indeed an organized hypocrisy. Reigate v.Union Manufacturing Co.-AIR 1928 Sind 137 where passing of a resolution for voluntary winding up does not operate as notice charge of the employees of the company, if the business is continued by the liquidator or the liquidation is only with a view to reconstruction. Once the claims are adjudicated then the distributable assets are ordered to be distributed by the company court which settles list of contributories and the persons allowed claims pursuant to proof. Procedure for Members' Voluntary Winding Up, 5.5.3. It may order a public examination of any person connected with the promotion or formation of the company or any officer connected with the company. These debts however, would only include debts, incurred after the legal incorporation of the Company. When the period fixed for the duration of the company in its articles has expired. It may determine the remuneration of the liquidator when the Official Liquidator is appointed as a liquidator, It may amend, vary, confirm or set aside the arrangement entered into between a company and its creditors on an appeal made by any creditor or contributory within 3 weeks of the completion of the arrangement. Once the insolvency is terminated pursuant to the conclusion of the winding up the company is removed from the register of members. This was recognised by the House of Lords in VTB Capital v Nutritek Intl Corpn  where Lord Neuberger said: ‘A company should be treated as being a person by the law in the same way as a human being.’ Prof.L.C.B. This is also true of the functioning of the BIFR. [Section 497(6A)], On receipt of the report of the Official Liquidator on such further investigation, the Court/Tribunal may either make an order that the company shall stand dissolved with effect from the date to be specified by the Court/Tribunal therein or make such other order as per the circumstances of the case brought out in the report. There are other statutory preferential payments for taxes, revenues and cesses, wages or salary for past due prior to winding up or for period not exceeding 4 months when there is a continuing employment for the beneficial winding up and for provident fund, pension and other claims as stipulated under Section 530 of the Companies Act. In case of voluntary winding up, the entire process is done without Court Supervision. Under the Sick Industrial Companies (Special Provisions) Act, the Board for Industrial and Financial Reconstruction as appointed by the Government and the Operating Agencies being public financial institutions or banks administer the rehabilitation aspects of industrial sickness of Schedule I industries as explained above. ... Dissertation: This is a mandatory program in which the choice of topic and title shall be approved by the JGLS Dissertation Committee. Consequently the registered office of the insolvent company or the Debtor Company determines the place of instituting the insolvency procedure. At any time after the presentation of a winding up petition and before the making of a winding up order, the Court may appoint the Official Liquidator to be liquidator provisionally. Under the Companies Act there are similar provisions as are applicable to personal insolvency under a special part namely Part VII dealing with insolvency. If, however, the secured creditor has relinquished his security then it would receive equally without preference. That case considered whether the insolvency provisions applied in all situations of insolvency or just those where insolvency occurs prior to termination of the contract and the contract is terminated as a result. Corporate and Insolvency Law focuses on corporate organizations and the law as it relates to them. Administration of Insolvency Procedures Generally, 5.11. The notice has to be given not less than 1 month before the meeting in the Official Gazette and should also give advertisement in some newspaper circulating in the district where the Registered Office of the company is situated. Where a provisional liquidator is appointed by the Court, the Court may limit and restrict his powers by the order appointing him or by a subsequent order; but otherwise he shall have the same powers as a liquidator. But it will not cover the following:-. When the company has been wound up, it is dissolved by order of the Court i.e. Once the total list of claims is drawn up and settled, there is a basic principle of equality of payment. Rio de Janeiro, 2016. This is particularly true for law students – any issue tackled in a law dissertation should be framed carefully, and facts have to be examined meticulously before any dissertation question can be framed. If a scheme of arrangement is sanctioned with a special majority then the Company Court can monitor the scheme of arrangement and can suspend creditor claims if they are not in accord with the revised or novated rights of the creditors pursuant to the Company Courtâs sanction. 53 LLM II Under the Guidance and Supervision of Prof. Aradhana Nair. The Official Liquidator shall cease to hold office as provisional liquidator, and shall become the liquidator, or the company, on a winding up order being made. Corporate Insolvency Law: Explore the substantive and procedural aspects of corporate insolvency, including the court/adjudicative and the out-of-court processes. The powers of the directors continue to the extent to which they are allowed by the liquidator. A Practitioner’s Approach to Competition Law in India: Learn about the Competition Act of 2002 and apply the regulations in the current scenario.