In a move that will help lessen the burden on the National Company Law Tribunal (NCLT), the government has notified the rules for winding up of companies under the companies law.
The Corporate Affairs Ministry has notified the Companies (Winding Up) Rules, 2020, which would be effective from April 1.
Petitions for winding up of companies are subject to various conditions, including thresholds on turnover and paid-up capital. The rules seek to inter-alia reduce the burden of the NCLT by enabling summary procedures for liquidation to be filed with the central government.
The rules have been notified under the Companies Act, 2013, which is implemented by the ministry.