Insolvency and Bankruptcy Code, 2016 has been emerged as a dynamic law and has made tremendous changes in insolvency proceedings. The code has various terminologies which has specific meaning although the definitions are mentioned in the Code but like all other legislations there is a need of interpretation. Therefore the Tribunal/Court from time to time has been given its interpretation through various jugdements. Few terms like financial creditor, dispute and other procedural expressions can be understood with the help of below mentioned judgements.
There are numerous LLPs which were incorporated but have not done any business or stop doing business. In order to reduce the number of bogus entities, this is important to provide an ease in procedure of winding up. There are two ways of winding up of LLP first is voluntary winding up and second is compulsory winding up (by tribunal). If partners want to wind up the LLP the process they need to opt is of voluntary winding up. It is pertinent to note here that in case winding up of LLPs, procedure for winding up is different for functioning and de-functioning LLPs. For winding up of functioning LLPs the procedure is laid down in Limited Liability Partnership (Winding up and Dissolution) Rules, 2010 and for defunct LLPs the ministry had specifically notified Form-24 in Limited Liability Partnership (Amendments) Rules, 2017 for granting procedural relief to those LLPs which are not doing business means which are defunct.
