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CS Professional · Insolvency and Bankruptcy - Law and Practice · Liquidation of Corporate Person

Meridian Steel Pvt Ltd is being voluntarily liquidated under section 59. Its liquidator has completely wound up the affairs and liquidated the assets. The Adjudicating Authority orders dissolution on 5 June. Within what time must a copy of the order be forwarded to the authority with which the company is registered?

The copy must be forwarded within fourteen days, that is by 19 June. For voluntary liquidation of a corporate person, section 59(9) prescribes fourteen days. The seven-day period applies only to dissolution of a corporate debtor under section 54.

  1. AWithin seven days, by 12 June
  2. BWithin fourteen days, by 19 JuneCorrect
  3. CWithin thirty days, by 5 July
  4. DWithin four weeks, by 3 July

Explanation

Section 59(9) provides that a copy of the dissolution order in voluntary liquidation is forwarded within fourteen days of the order. Five June plus fourteen days is 19 June. The seven-day period applies under section 54(3) for liquidation of a corporate debtor, so it is the wrong choice here.

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