Voluntary ‑ Winding up ‑ Declaration of solvency ‑ Effect of non‑filing of declaration of solvency on voluntary winding up

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ‑ Declaration of solvency ‑ Effect of non ‑ filing of declaration of solvency on voluntary winding up The question of effect of non‑filing of declaration of solvency on voluntary winding up had cropped in several cases. After due consideration of the matter it has been decided as under : 1. Where a resolution for members voluntary winding up has been passed bu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ns contained in sections 500 to 509. If, in a case indicated above, the procedure laid down in sections 500 to 509 is not followed, it would tantamount to non‑compliance with the provisions of law applicable in the matter, and, consequently, the proceedings relating to the voluntary winding up taken by the company shall be void ab initio ‑ M. Lakshmiah v. Registrar of Compani .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... be treated as void ab initio (because the company should not have had any difficulty in filing the declaration of solvency if it had no creditors) and the company should be asked to pass a fresh resolution for its winding up after complying with the requirements of section 488. In such a case, the company should not be treated to be in liquidation unless a fresh resolution for winding up has b .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X