- Sanskar Garg
Rule 157 of Companies (Winding-up) Rules, 2020: Preliminary Hearing of the Application
Updated: Oct 4, 2022
#Companiesact #sec333 #windingup #windinguprules #companylaw #corporatelaw
The Ministry of Corporate Affairs released the Companies (Winding-up) Rules, 2020 in the year 2020. While the Insolvency and Bankruptcy Code of 2016 covers "voluntary winding up" and "winding up on the grounds of inability to pay debts," the Winding Up Rules detail the process for winding up a company in accordance with Section 271 of the Companies Act, which specifies when the NCLT may wind up a company.
Rule 157 states that any application brought to the tribunal by the liquidator under Rule 156 must be heard ex parte (Ex parte is a legal word that refers to when one of the parties concerned is not present or is not represented.) at the first instance.
In addition, the orders and notice must be served on those individuals whom the Tribunal deems relevant in relation to the application. They can be the lessor or representatives of the lessor of the concerned property or any other person who is showing interest in the property to be disclaimed.
Upon a preliminary examination, the tribunal will set a date for the hearing of the scenario and issue any required directions as to who should receive notice of the application.
The corporate liquidator's name appears on the tribunal's seal, and this notice is issued. The service of notice is to be done not less than 7 days before the date fixed for the hearing, along with a copy of the application and of the affidavit filed.