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Insolvency and Bankruptcy - Law and Practice · Voluntary Liquidation of Companies

Voluntary Liquidation: Commencement, Public Announcement and Claims

Updated 11 October 2026 · Fact-checked

Once a corporate person starts voluntary liquidation, the liquidator must make a public announcement within five days of appointment. It calls on stakeholders to submit claims as on the liquidation commencement date. The last date for claims is thirty days from that commencement date. It is published in newspapers and on websites.

Understand Commencement, Public Announcement and Claims

Voluntary liquidation is a way for a solvent corporate person to close down by its own decision, under section 59 of the IBC and the IBBI (Voluntary Liquidation Process) Regulations, 2017. It is not forced by creditors. The company declares it can pay its debts in full and then winds up under a liquidator.

The process has a clock. The liquidation commencement date is the starting point. Every later date in the process, including the last date for claims, is counted from it or from the liquidator's appointment. Know which date each time-limit runs from.

After appointment, the liquidator must tell the world that liquidation has begun and invite claims. This is the public announcement. It protects stakeholders, who learn the company is being closed and can claim what is due to them. It also protects the liquidator, because he can distribute only against verified claims.

Stakeholders then submit claims as on the liquidation commencement date. The liquidator verifies them and later distributes proceeds. Amounts that remain unclaimed or undistributed go to the Corporate Voluntary Liquidation Account kept by the IBBI, which is the last part of the money trail.

Do not confuse this with CIRP. In CIRP the public announcement is made by the interim resolution professional after the Adjudicating Authority admits an application (sections 13 and 15), and the process closes on the 180th day from admission. In voluntary liquidation no admission order is needed for the announcement. The liquidator makes it on his own.

Key rules to remember

Time to make public announcement
Within 5 days from the liquidator's appointment
Regulation 14(1). The liquidator makes it in the form notified by the Board through circular.
Last date for claims
30 days from the liquidation commencement date
Regulation 14(2)(b). Counted from commencement, not from the announcement date.
Contents of announcement
Call upon stakeholders to submit claims as on the liquidation commencement date + state the last date for claims
Regulation 14(2)(a) and (b).
Where to publish
One English and one regional language newspaper (wide circulation) + company website, if any + Board-designated website, if any
Newspapers must serve the registered office, the principal office if any, and other places where the liquidator thinks material business is conducted. Regulation 14(3).
Unclaimed amounts
Deposit unclaimed dividends and undistributed proceeds, with income earned, into the Corporate Voluntary Liquidation Account before applying under section 59(7)
Regulation 39(2). Late deposit attracts interest at 12% per annum (regulation 39(4)).
Transfer to Consolidated Fund
Amount unclaimed or undistributed for 15 years from the date of dissolution order
Regulation 39(13). The amount and income earned on it go to the Consolidated Fund of India.

How to solve Commencement, Public Announcement and Claims questions

Use this order for any case question on commencement, announcement or claims. Tie every conclusion to a date.

  1. 1Fix the key dates from the facts: liquidation commencement date and date of the liquidator's appointment.
  2. 2Compute the deadline for the public announcement: five days from appointment.
  3. 3Compute the last date for claims: thirty days from the liquidation commencement date.
  4. 4Check the content: it must call for claims as on the commencement date and give the last date.
  5. 5Check the publication: one English and one regional newspaper at the right locations, plus the company website and the Board-designated website, if any exist.
  6. 6Test the stakeholder's claim: was it submitted by the last date and does it relate to the commencement date?
  7. 7Conclude clearly: compliant or not, and what the liquidator should do to cure the default.
  8. 8For unclaimed money, add the Corporate Voluntary Liquidation Account route and the 12% interest on late deposit.

Quickest way: Date-and-channel check

When to use it: Short-note or MCQ-style written questions where you have limited time and need a quick, safe answer.

  1. Write 5 days (announcement) and 30 days (claims).
  2. Note the reference point of each: appointment for the 5 days, commencement for the 30 days.
  3. List the channels: English paper, regional paper, company website, Board website.
  4. State the content: claims as on commencement date plus the last date.
  5. Close with one line on unclaimed amounts going to the Corporate Voluntary Liquidation Account.

Common mistakes in Commencement, Public Announcement and Claims

  • Counting the 30 days from the date of the public announcement.

    Students assume the claim period starts when stakeholders are told.

    Fix: The regulation fixes the last date at thirty days from the liquidation commencement date. Say this explicitly.

  • Saying the announcement is due within five days of commencement.

    Both dates are close together and get blended.

    Fix: The five days run from the liquidator's appointment. The thirty days run from commencement.

  • Mixing up voluntary liquidation with CIRP announcement rules, such as the 180-day closing date.

    Both topics use the phrase public announcement.

    Fix: The 180-day closing date belongs to section 15 CIRP. In voluntary liquidation, the regulation 14 contents apply.

  • Writing that only a national newspaper is needed.

    Students remember newspaper but not the language and location rule.

    Fix: Write one English and one regional language newspaper with wide circulation at the relevant locations.

  • Forgetting the websites.

    Students focus on newspapers.

    Fix: Add the company website and the website designated by the Board, where they exist.

  • Stating that the Board directly pays all stakeholders after dissolution without any application.

    Students skip the withdrawal procedure.

    Fix: Before dissolution, a stakeholder applies to the liquidator. After dissolution, he applies to the Board. The Board may then order withdrawal.

Worked examples

Example 1

Nirmal Textiles Ltd, a solvent company, begins voluntary liquidation. The liquidation commencement date is 1 March. The liquidator, CA Rao, is appointed on 1 March. State the latest date for the public announcement and the last date for claims, and where the announcement must be published. Assume the dates fall in the same non-leap year.

Show the solution
  1. Announcement is due within five days of appointment: 1 March + 5 days = 6 March.
  2. Last date for claims is thirty days from the liquidation commencement date: 1 March + 30 days = 31 March.
  3. The announcement must call on stakeholders to submit claims as on 1 March and state 31 March as the last date.
  4. Publish it in one English and one regional language newspaper with wide circulation at the registered office, the principal office if any, and other places of material business.
  5. Also publish it on the company's website, if any, and on the website designated by the Board, if any.

Answer: Announcement by 6 March; claims by 31 March; publish in the newspapers and on the websites described above.

Example 2

In the case above, the liquidator publishes the announcement on 12 March only in one English newspaper and gives 30 days from 12 March for claims. Advise on the defects.

Show the solution
  1. Timing: the announcement was due by 6 March. Publishing on 12 March is late, beyond five days from appointment.
  2. Claim period: the last date must be thirty days from the liquidation commencement date, 31 March. Counting from 12 March (11 April) is wrong.
  3. Publication: only one English newspaper was used. A regional language newspaper is also required, along with the company website and the Board-designated website, if any.
  4. Remedy: the liquidator should issue a compliant announcement at once, with the correct last date and channels, and record the reasons for the delay.

Answer: The announcement is defective on timing, the claim date and the mode of publication. The liquidator must correct the announcement and comply with regulation 14.

Exam tips

  • Write dates as simple arithmetic. Examiners reward a visible 5-day and 30-day computation.
  • Always name the reference point (appointment or commencement) next to each period.
  • Quote regulation 14 for announcement and regulation 39 for unclaimed amounts only when you are sure; otherwise describe the rule in words.
  • Where the paper compares processes, contrast CIRP's section 15 contents with regulation 14 contents in two lines.
  • Close case answers with a practical step, such as re-publication or deposit with interest.

Practice questions from Voluntary Liquidation of Companies

Commencement, Public Announcement and Claims: frequently asked questions

Within how many days must the liquidator make the public announcement?

Within five days from his appointment. He makes it in the form notified by the Board through circular.

What is the last date for submitting claims in voluntary liquidation?

It is thirty days from the liquidation commencement date. The announcement must state this date.

Where must the public announcement be published?

In one English and one regional language newspaper with wide circulation at the relevant locations. It must also be put on the company's website and the website designated by the Board, if any.

What happens to unclaimed dividends in voluntary liquidation?

The liquidator deposits unclaimed dividends and undistributed proceeds, with income earned, into the Corporate Voluntary Liquidation Account before applying under section 59(7). Late deposit carries interest at 12% per annum.

How is this different from the CIRP public announcement?

In CIRP the announcement follows an admission order and states the 180th day closing date under section 15. In voluntary liquidation the liquidator announces on his own and sets a 30-day claim window.