Corporate Dissolution: An Interplay Between The Companies Act and Insolvency and Bankruptcy Code, 2016

Abstract

The most feasible means to end the life of the company and ultimately distributes the proceeds from such process to clear of the debts of the company is Corporate Dissolution. The rationale behind opting for the process of corporate dissolution is to permanently halt the affairs of the company. The grounds for corporate dissolution are mentioned under the various provisions of Companies Act, 2013 and Insolvency & Bankruptcy Code, 2016. However, there are certain grounds which have been modified, varied, and even struck off completely as the dynamics of the Corporate World changed. The author through this paper attempts to shed light into the concept of Corporate Dissolution under the various provisions of Indian Corporate Laws. Further, the author analyses the process of corporate dissolution post and after enactment of IBC, 2016. The impact of IBC on the process of winding-up, and the grounds for voluntary and involuntary dissolution are put to light. Ultimately, the need to remove the ground of inability to pay debts and its modified adoption under the IBC, 2016 has been discussed.