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

During the voluntary liquidation of Sabarmati Plastics Ltd, the liquidator completes realisation of all assets and winds up the affairs. Which statement correctly describes the effect of the Adjudicating Authority's order on his application?

The company is dissolved from the date of the Adjudicating Authority's order. Section 59(8) fixes the date of that order as the date of dissolution, and forwarding a copy to the registering authority within fourteen days is a later step that does not postpone dissolution.

  1. AThe company is dissolved from the date of the orderCorrect
  2. BThe company is dissolved from the date the liquidator filed the application
  3. CThe company is dissolved only once the Registrar strikes off its name
  4. DThe company is dissolved from the date of the members' original resolution

Explanation

Section 59(8) says the Adjudicating Authority passes an order that the corporate debtor is dissolved from the date of that order. A copy then goes to the registering authority under section 59(9), but dissolution does not wait for any striking off.

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