Companies (Winding-up) Rules, 2020 allow certain classes of companies to close their business by making a winding-up application to Central Government without going to NCLT. Explain the summary procedure for liquidation

Summary Procedure for liquidation These rules allow following classes of companies to close their business by making a winding- up application to Central Government without going to NCLT. Companies accepting deposit and having total outstanding deposits up to ₹25 lacs* Companies having total outstanding loan including secured loan up to ₹50 lacs* Companies having total turnover up to ₹50 crores* Companies with paid-up capital up to ₹1 Crore* *based on latest audited balance sheet. In addition, companies having book value of assets up to ₹1 Crore [currently specified under section 361(1)(i)) of the Companies Act, 2013, can also approach Central Government for liquidation. The provisions of the Rules related to filing and audit of the Company Liquidator's accounts and its procedure (rule 91 to 99 of the rules) and disposing of assets (rule 165 to 167 of the rules) shall be applicable to above class of companies with modification that the word 'Tribunal' shall be considered as 'Central Government'. Other procedural aspects are as under: The rules lay down the process for meeting of creditors and contributories of the company, and specify the scenarios in which creditors can vote. The rules make it necessary for all the money lying in the bank account of Company liquidator which is not immediately required for the purposes of winding up, to be invested in government securities or in interest bearing deposits in any scheduled bank. The rules lay down the procedure for maintenance of registers and books of accounts by the Company liquidator. The rules also outline the procedure for creditors to prove their debts and claims against the company and if the proof of such debt gets rejected by the Company liquidator, there is also a provision and process for creditor to make an appeal to Tribunal.