Pro-active action in case of winding up petitions

GENERAL CIRCULAR NO. 54/2011

F. No. 35/6/2011/Insolvency

Government of India

Ministry of Corporate Affairs

5th Floor, ‘A’ Wing, Shastri Bhavan,

Dr. R.P. Road, New Delhi-110001

Dated 26th July 2011

To

All Regional Directors

All ROCs

All Official Liquidators

Subject: Pro-active action in case of winding up petitions.

It has been noticed that winding up petitions are filed by creditors, stake holders and management before Hon’ble  High courts  without providing full information.    This  leads  to  waste  of  valuable  time  of Hon’ble  Court  and  also  delays completion  of  winding  up  process  as  well.    In  order  to  speed  up  the  winding  up process and to introduce best international practices the winding up process, following actions will be taken by concerned OL:-

(a) OLs shall post one of the staff  members to the Company Court to keep track of all cases where applications have been filed for winding up, but orders for winding up are yet to be issued by the Court. 

(b) For all cases pending till date and in future as well, information shall be obtained by OL from “institution register” maintained in High Court and action as below must be taken in all cases.

(c) In each case the OL will file an  application praying to the Court to direct the management of the company to submit following information duly verified by a chartered accountant:-

(i) The current addresses of the  Directors, Company Secretary and Statutory Auditor of the company; -2-

(ii) Location and physical details of each immovable asset of the company along with its current valuation;

(iii) The details of all the debtors and creditors with their complete addresses and occupations;

(iv) The details of each movable asset of the company along with value;

(v) The details of workmen/employees and any amount outstanding to them;

(vi) The details of all movable and immovable assets held in the personal names of director by  providing its location, value, dates of acquisition and nature  of right, title and interest therein; 

(vii) Copies of last three years audited balance sheet of the company; and

(viii) The details of location of the registered office of the company.

(d) RDs will ensure that in all pending cases, the applications are moved by OL before the Court before the next date of hearing and in all new cases, these are filed before the  Hon’ble Court before the second hearing of the case.

(e) RDs will ensure that a standard draft is prepared by them after taking legal advice and the same is used in all cases by OLs.

(Jaikant Singh)

Director