Legal Question in Credit and Debt Law in India

If you file winding up petition, then court will first of all issue notice to the Company, and after that, court is satisfied that the company is unable to pay its debts, then it will admit the petition and issue citations to other share holders, creditors, OL, workers etc. as to whether it is the appropriate to wind up the company. If based on OL report, and other objections, if the court is satisifed that the company is required to be wound up, then it iwll order winding up, and the management and affairs of company will pass over to OL. Then OL will take over the assets, sale them, and will distribute the proceeds of assets upon the creditors and other dues.

Vivek N Mapara

vnmlaws.com