Winding up proceedings were earlier initiated and conducted under the Companies Act, 1956. However, with the coming into force of the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016 (IBC), the process underwent a change. The 1956 act provided a statutory right to file a winding up petition on the ground of inability to pay debts. The 2013 act does not provide a similar right as insolvency proceedings now can be initiated only under the IBC on account of default of either a financial or operational debt. Read More