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ARTICLE · 28 APRIL 2017

Voluntary Liquidation – A Comparative Analysis Between IBC And CA 1956

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The Insolvency and Bankruptcy Board of India has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 ("New Regulations") on March 31, 2017.

IndiaInsolvency/Bankruptcy/Re-Structuring
Sharad Tyagi
Sharad Tyagi
Poonam Saxena
Poonam Saxena
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The Insolvency and Bankruptcy Board of India has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 ("New Regulations") on March 31, 2017. The New Regulations provides the process for initiating voluntary liquidation by a corporate person i.e. companies, limited liability partnerships and any other persons incorporated with limited liability.

Before introduction of New Regulations, voluntary liquidation of the companies was governed by the Companies Act, 1956 ("CA 1956") since the provisions as mentioned in the Companies Act, 2013 ("CA 2013") had never been notified. Now, the Government has repealed / omitted the provisions of voluntary liquidation as mentioned in CA 1956 as well as CA 2013 vide notification dated March 31, 2017 and May 28, 2016, respectively.

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