Bharti Gym Equipment Limited is a profit making, dividend paying company. In January 2024 the company decided to initiate voluntary liquidation proceedings. After completing the required process, the company filed an app

Section 59(1) of the Insolvency and Bankruptcy Code, 2016 provides that a corporate person who intends to liquidate itself voluntarily and has not committed any default may initiate voluntary liquidation proceedings under the provisions of Chapter V. Regulation 39 of IBBI (Voluntary Liquidation Process) Regulations, 2017 deals with the provisions relating to the unclaimed proceeds of liquidation or undistributed assets. The Board shall operate and maintain an Account to be called the Corporate Voluntary Liquidation Account in the Public Accounts of India. A liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed proceeds, if any, in a liquidation process along with any income earned thereon till the date of deposit, into the Corporate Voluntary Liquidation Account before he submits an application under sub-section (7) of section 59. A liquidator, who holds any amount of unclaimed dividends or undistributed proceeds in a liquidation process, shall deposit the same within fifteen days of the date of such commencement, along with any income earned thereon till the date of deposit. A liquidator, who fails to deposit any amount into the Corporate Voluntary Liquidation Account under this regulation, shall deposit the same along with interest thereon at the rate of twelve percent per annum from the due date of deposit till the date of deposit. A liquidator shall submit to the authority with which the corporate person is registered and the Board, the evidence of deposit of the amount into the Corporate Voluntary Liquidation Account under this regulation, and a statement in Form G setting forth the nature of the amount deposited into the Corporate Voluntary Liquidation Account, and the names and last known addresses of the stakeholders entitled to receive the unclaimed dividends or undistributed proceeds. The liquidator shall be entitled to a receipt from the Board for any amount deposited into the Corporate Voluntary Liquidation Account, Under this Regulation. Prior to dissolution of the corporate persons, a stakeholder, who claims to be entitled to any amount deposited into the Corporate Voluntary Liquidation Account, may apply to the liquidator in Form - I for withdrawal of the amount. On receipt of request under sub-regulation (7), the liquidator after verification of the claim, shall request the Board for release of amount to him for onward distribution. Board on receipt of request may release the amount to the liquidator. The liquidator, shall, after making the distribution to the stakeholder shall intimate the Adjudication Authority of such distribution. After dissolution of the corporate person, a stakeholder, who claims to be entitled to any amount deposited into the Corporate Voluntary Liquidation Account, may apply to the Board in Form - I for an order for withdrawal of the amount. If any other person other than the shareholder claims to be entitled to any amount deposited to the Corporate Voluntary Liquidation Account, he shall submit evidence to satisfy the liquidator or the Board, as the case may be, that he is so entitled. The Board may, if satisfied that the stakeholder or any other person is entitled to withdraw of any amount from the Corporation Voluntary Liquidation Account, make an order for the same in favour of that stakeholder or that other person.