Introduction

Under section 2(9A) winding up has been defined as

“winding up” under this Act or “liquidation” under the
Insolvency and Bankruptcy Code, 2016
Winding up will now be governed by the Act as well as the
Code
“Voluntary winding up” and winding up on the ground of
“inability to pay debts” has no place in the Act but in the
Code
The Code, however, mandates insolvency in case of
“default” even when the company is able to pay its debts,
but have defaulted
 Insolvency
A situation where a corporate debtor is unable to pay
its debts due to lack of means

Assets of the entity is not adequate to discharge the

debts
Default means actual non payment on due date.
 Jurisdiction
Winding up proceedings pending as on 15.12.2016, notice of
which have not been served –

a) Inability to pay debts – as per the Code

b) Other grounds than (a) above – Respective Tribunals

c) Voluntary winding up – Continued by the respective

H.C. as per 1956 Act