Pro-active action in case of winding up petitions

With an aim to adopt the fair and speedy international practices for winding up business setups, Government of India vide its circular 54/2011 dated 26.07.2011 has come up with the following actions that shall be undertaken by the concerned official liquidator (‘OL’):

4. 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.
5. 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
6. 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:-
1. The current addresses of the Directors, Company Secretary and Statutory Auditor of the company
2. Location and physical details of each immovable asset of the company along with its current valuation;
3. The details of all the debtors and creditors with their complete addresses and occupations
4. The details of each movable asset of the company along with value;
5. The details of workmen/employees and any amount outstanding to them;
6. 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;
7. Copies of last three years audited balance sheet of the company; and
8. The details of location of the registered office of the company.

Regional Director shall moreover be responsible to ensure that with respect to 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.