An Exploratory Study on Compulsory Liquidation of a Company and its Liability

This research paper delves into the intricacies of company liquidation, focusing on winding-up process as an essential legal mechanism to terminate a corporation's existence. The study addresses objectives understanding causes liabilities companies during and powers courts tribunals in process. scope primarily centers India's framework, encompassing Companies Act 2013 Insolvency Bankruptcy Code 2016. finds that while insolvency is often perceived primary reason for other factors contribute decision. Compulsory procedures are aimed at permanently closing businesses no longer viable, relieving directors unmanageable debts, preventing improper trade practices. highlights roles different adjudicating authorities examines differences between voluntary compulsory modes. draws from existing literature empirical substantiate its findings. authors compare provisions under showcase evolution regulations. They emphasize importance efficient liquidation address bad debt issues. In conclusion, underscores significant factor, circumstances lead liquidation. reforms introduced by have streamlined expedited process, ultimately aiming facilitate resolution debts improve overall economic landscape. suggest more prudent enforcement penalties, preference when suitable, continued emphasis efficiency new framework.