NCLT Winding Up
When a company reaches a point where continuing operations is no longer viable, the law offers a structured exit route through NCLT Winding Up.
It ensures fair settlement of debts, transparent asset distribution, and lawful closure under the Companies Act, 2013.
Whether caused by insolvency, business failure, disputes, or regulatory non-compliance, winding up requires strict legal procedures.
NCLT (National Company Law Tribunal) oversees this process to protect creditors, shareholders, employees, and the public at large.
At Aarthika, we help businesses navigate every stage—from petition filing to liquidation—ensuring compliance and clarity.
Let’s simplify this complex legal exit mechanism in an easy, practical language.
Documents Required
- Latest audited financial statements
- List of creditors & liabilities
- Statement of Affairs (SOA)
- Board Resolution approving winding up
- Affidavit & petition for NCLT
- Proof of default/financial difficulty
- Details of assets & liabilities
- MOA, AOA, and incorporation documents
- Auditor & CA certificates
- Notices, statutory registers & compliance records
FAQs
When it becomes insolvent, defaults on debts, acts against public interest, or when shareholders voluntarily opt for closure under tribunal supervision.
The liquidator takes control of assets, sells them, pays creditors, settles liabilities, and closes the company’s affairs.
Rarely, but possible if the company proves financial revival or settlement before final orders.
Employees become creditors. Their dues are settled from the company’s assets as per priority under law.