XB Limited continuously ran its business in loss. The company has its total outstanding loan including secured loan of ₹ 80 Lakh which as per the latest audited balance sheet has risen to 1 crore. The company want to win

With a view to systemize the procedure of winding up of a Company under the Act, the Ministry of Corporate Affairs ('MCA') vide notification dated 24th January 2020, had notified the Companies (Winding Up) Rules, 2020 ('The Rules'). The Rules are applicable to companies going into "winding up for the circumstances mentioned under section 271" as well as "Summary procedure for liquidation under section 361" of the Companies Act, 2013. It allows the following companies (on the basis of latest audited balance sheet) to wind up their business by making an application to Central Government without approaching NCLT: Companies accepting deposit and having total outstanding deposits Upto ₹25 Lakhs Companies having total outstanding loan including secured loan Upto ₹50 Lakhs Companies having total turnover Upto ₹50 Crore Companies with Paid up share capital Upto ₹1 Crore Above companies are allowed to approach Central Government for summary liquidation only if they have book value of assets upto ₹1 crore. Hence in this case, M/s XB Limited cannot wind up the business without approaching NCLT as the outstanding loan including secured loan exceeds ₹50 Lakh.