The Applicability
Section 361 permits summary winding up for: a small company; a company with total assets not exceeding ₹1 crore; and a defunct company that has no assets or liabilities. The procedure is available where the company has no creditors or has obtained the consent of all creditors. The NCLT exercises the summary jurisdiction to reduce the cost and delay of a full winding up.
The Procedure
The company files a petition under Section 361, supported by the statement of affairs, the list of creditors, and the consent of the creditors. The NCLT may dispense with the meetings of creditors and contributories, and may appoint the official liquidator as the liquidator. The liquidator’s report and the final accounts are filed with the NCLT, and the order of dissolution is passed.
The Creditor Protection
Summary winding up does not extinguish creditor claims. The company must disclose all creditors, and the NCLT must be satisfied that the creditors have been paid or have consented to the arrangement. A summary winding up that conceals a creditor is vulnerable to challenge and to the liquidator’s recovery powers.
The Interaction with Strike-Off
A defunct company may choose between summary winding up and strike-off under Section 248. Strike-off is simpler but does not address creditor claims; summary winding up provides a process for creditor settlement. A company with any known liability should prefer the winding-up route.
Call to Action: For summary winding-up eligibility, creditor consent documentation, or NCLT petition support, contact office@anujdesaiassociates.com or 9619456656. Website: https://anujdesaiassociates.com. LinkedIn: linkedin.com/in/ca-anuj-desai-122547230.