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

Under the IBC, when does the corporate debtor stand dissolved after the liquidator of Ganga Polymers Ltd files the dissolution application in voluntary liquidation and the Adjudicating Authority allows it?

The company stands dissolved from the date of the Adjudicating Authority's order. The order itself states that the corporate debtor is dissolved from that date. Neither the filing of the liquidator's application nor the later forwarding of the copy to the registering authority determines the date of dissolution.

  1. AFrom the date of the liquidator's application
  2. BFrom the date of the order of the Adjudicating AuthorityCorrect
  3. CFrom the date the copy of the order is received by the Registrar
  4. DFrom the date of the members' special resolution

Explanation

Under section 59(8), the Adjudicating Authority passes an order that the corporate debtor shall be dissolved from the date of that order. The application date, the date the Registrar gets the copy, or the resolution date does not fix dissolution.

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