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

The NCLT passes an order dissolving Kaveri Agro Pvt Ltd, which was in compulsory liquidation under Chapter III, on 10 March. By what date must a copy of the order be forwarded to the authority with which the company is registered?

The copy must be forwarded by 17 March, seven days after the order. Section 54(3) fixes seven days for dissolution in liquidation of a corporate debtor. The fourteen-day period belongs to voluntary liquidation of a corporate person, which is not the case here.

  1. A17 March, being seven days from the orderCorrect
  2. B24 March, being fourteen days from the order
  3. C9 April, being thirty days from the order
  4. DNo time limit is prescribed

Explanation

Section 54(3) requires a copy of the dissolution order to be forwarded within seven days of the order to the authority with which the corporate debtor is registered. Ten March plus seven days is 17 March. Fourteen days applies to voluntary liquidation under section 59(9), so it does not fit this case.

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