RECENT TRENDS IN WINDING UP OF COMPANIES IN INDIA

As per the Companies Act, 2013, a Company is an artificial juristic person which canonly come into existence through registration and incorporation and is provided withvarious rights, duties and obligations .Similarly dissolution of company is a legalphenomenon, as per the guidelines of the article of association, being regulated by thevarious provisions of the said Act. Winding up means a process by which thedissolution of a company is brought about and its assets are realized and applied inthe payment of its debts. After satisfaction of the debts, the remaining balance, if any,is paid to the members in proportion to their contribution to the capital of thecompany. As per Section 2 (94A) of the Companies Act, 2013, winding up refers toprocess winding up under the said Act or liquidation under the Insolvency andBankruptcy Code, 2016. There exit various modes of winding up of Companies undersection 270 of Companies Act, 2013, such as Compulsory winding up by the courts,Winding up under the supervision of court and Voluntary winding up. After theenforcement of the Insolvency and Bankruptcy Code, 2016, several changes havebeen brought in the Companies Act, 2013, such as subtractions voluntary winding upand winding up on the ground of inability to pay debts. The research paper is anattempt to examine the important principals governing winding up of companies inIndia and has been written in an analytical style. The study is essentially beingdoctrinal and secondary source of data has been used for writing the research paper.The primary sources include Companies Act, 1956, Companies Act, 2013, Insolvencyand Bankruptcy Code, 2016 and the government notifications of variousamendments done in the existing laws. The research paper will analyse the recenttrends in the winding up of companies in India and its impact followed by suggestionswherever required.