Rule 158- Companies (Winding-up) Rules,2020: Statement to be made by Person Interested in Disclaimer

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In the year 2020, the Ministry of Corporate Affairs published the Companies (Winding-up) Rules, 2020. Though the Insolvency and Bankruptcy Code of 2016 covers "voluntary winding up" and "winding up on the grounds of incapacity to pay debts," the Winding Up Rules define the process for winding up a company under Section 271 of the Companies Act, which stipulates when the NCLT may wind up a corporation.

Rule 158 states that a statement is to be made on record by a person claiming his interest in any part of the property of the company which the liquidator wishes to disclaim under section 333 of Companies Act, 2013. If a person makes such a claim, he shall provide a statement about what part of the company's property is being claimed by him. Although it is not compulsion as the rule describes that ‘if so required by the liquidator’, the natural rule of law obligates the person to do so. If the statement is made to the company liquidator, it must be furnished with all the documents which shows his direct interest in the property which the liquidator wishes to be disclaimed. Statement is made directly before the tribunal.

After consideration of the statement the tribunal may make an order for the vesting of property in, or the delivery of the property to the person claiming his interest. The Tribunal may also order that the property should be delivered by way of compensation for liability as aforesaid, or on such terms as the Tribunal considers just and proper.

A person who claims to be interested in any part of the property of a company which the company liquidator wishes to disclaim may be required to furnish a statement of his interest if so required by the liquidator