Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Adjudication and Appeals for Corporate Persons

The liquidator of Nirmal Foods Ltd has completely liquidated its assets and applied to the NCLT under section 54. The NCLT passes the dissolution order on 10 March. What must follow regarding the order?

A copy of the dissolution order must be forwarded within seven days of the order to the authority with which the corporate debtor is registered. The company stands dissolved from the date of the NCLT's order, so no further meeting or appellate step is needed.

  1. AThe company stays in existence until the next annual general meeting
  2. BA copy must be forwarded within seven days of the order to the authority with which the company is registeredCorrect
  3. CA copy must be forwarded within thirty days to the NCLAT
  4. DNo copy need be sent, as the order takes effect on its own

Explanation

Under section 54, once assets are completely liquidated the liquidator applies, and the NCLT orders dissolution from the date of the order. Section 54(3) requires a copy to be forwarded within seven days to the authority with which the corporate debtor is registered. The NCLAT is not the recipient.

Did you get it right without looking?

One question tells you little. A timed set on Adjudication and Appeals for Corporate Persons shows your real accuracy, how long you take and where you lose marks.

Practise Adjudication and Appeals for Corporate PersonsFree diagnostic mock

More Adjudication and Appeals for Corporate Persons questions