Rule 161 of Companies (Winding-up) Rules, 2020: Disclaimer of lease is to be filed in Tribunal forth

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The Companies (Winding-up) Rules, 2020 were published by the Ministry of Corporate Affairs in 2020. While the Insolvency and Bankruptcy Code, 2016 covers 'voluntary winding up' and 'winding up on the grounds of inability to pay debts,' the Winding Up Rules outline the procedure for winding up following Section 271 of the Companies Act, which specifies when the NCLT may wind up a company.

Rule 156 to Rule 162 discusses the procedure to deal with the disclaimer application filed at Tribunal by the company liquidator. Application for leave to disclaim any party of a company's property is mentioned under subsection (1) of section 333 (Disclosure of Onerous Property).

Rule 161 majorly deals with rules in relation to leasehold property vested in the name of company. Each disclaimer must be submitted to the Tribunal by the Company Liquidator in order to be effective. The disclaimer must be filed forthwith with the tribunal in relation to any leasehold property owned by the company.

Certain mentioned things in the preceding rules must be followed and duly executed, such as: notice of the filing of the disclaimer shall be given to the persons interested in the property; the disclaimer shall contain particulars of the interest disclaimed and a statement of the persons to whom notice of the disclaimer has been given. If a company desires to disclaim all its leasehold property, the company shall deliver in writing notice of the disclaimer to the persons interested and then send a copy of it within three days thereafter to the Registrar.

A disclaimer of lease shall be in Form WIN 85, and a notice of disclaimer of lease in Form WIN 86.