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

Sunrise Textiles Pvt Ltd (Surat) has completely wound up its affairs and sold all its assets during voluntary liquidation under the IBC. The liquidator, CS Meera Joshi, now wants the company to cease to exist. What must she do?

The liquidator must apply to the Adjudicating Authority for dissolution once the affairs are completely wound up and the assets fully liquidated. The Adjudicating Authority, not the Registrar or the Board, passes the dissolution order. The Registrar only receives a copy of that order.

  1. AFile an application with the Adjudicating Authority for dissolution of the companyCorrect
  2. BPass a board resolution declaring the company dissolved
  3. CApply to the Registrar of Companies for dissolution, who will pass the order
  4. DWait for the Insolvency and Bankruptcy Board of India to issue a dissolution certificate

Explanation

Under section 59(7), when the affairs are completely wound up and assets completely liquidated, the liquidator applies to the Adjudicating Authority for dissolution. The Registrar only receives a copy of the order afterwards, so applying to the Registrar is wrong.

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