HOW IS THE FLOWCHART FOR WINDING-UP OPERATIONS ?

Judgment obtained against debtor company

Send notice of demand under Section 218 of Companies Act 1965

Response from judgment debtor company

Full settlement or acceptable settlement proposal where in default may resume fresh proceedings

No payment

Prepare Winding Up Petition after 21 days of service of Notice of Demand

File Winding Up Petition in Court

Attend to service of petition on the company

Advertisement of petition in local newspaper

Hearing of Winding Up Petition

No Winding Up Order made

Winding Up Order made

(a) Claims settled Court to appoint a liquidator of the estate and (b) No valid claims effects of the company (c) Partial payment or repayment proposal accepted (d) Proper steps not taken Company to cease to carry on business.

Petitioner to file Proof of Debt

Liquidator to take into his custody or under his control all the property, effects and chooses in action to which the company is or appears to be entitled.

Liquidator to prepare statement of the assets, debts and liabilities of the company and the value of those assets as shown by the books and records of the company.

Realization and distribution of company's assets