Rule 156 of Companies (Winding-up) Rules, 2020: Application of Disclosure of Onerous Property

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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 explains the application for leave to disclaim any party of a company's property under subsection (1) of section 333 (Disclosure of Onerous Property). The application must be accompanied by

• an affidavit that sets forth all relevant facts about the property,

• the parties involved, and the nature of their interests,

• as well as whether the company is solvent and

• whether any notice has been served on the liquidator by any person referred to in sub-section (4) of section 333 requires him to elect whether or not he will disclaim.

The format of all the applications mentioned above and notices can be seen in the rules' later part, namely FORM 76-82.

FORM WIN 76: Notice to Liquidator to elect whether he will disclaim

FORM WIN 77: Notice by Liquidator of intention to apply to Tribunal for leave to disclaim

FORM WIN 78: Summons for extension of time for giving notice of intent to apply for leave to disclaim

FORM WIN 79: Order extending the time for a disclaimer

FORM WIN 80: Notice of property sought to be disclaimed

FORM WIN 81: Application for leave to disclaim

FORM WIN 82: Affidavit in support for leave to disclaim a lease