"Initiation of voluntary liquidation at the instance of Members or Creditors of the Corporate person intended to be liquidated but dissolution only subject to the orders of Adjudicating Authority National Company Law Tri

The statement is true. Section 59 of the Insolvency and Bankruptcy Code, 2016 provides detailed process from initiation to closing of voluntary liquidation of Corporate Person whether solvent or insolvent. Solvent bodies need to file declaration of solvency test consent of creditors having two-third in value by a suitable resolution needs to be filed with Registrar of Companies. The liquidator, being a registered Insolvency Professional, is appointed who shall issue public announcement within 5 days of appointment for inviting claims. Thus, voluntary liquidation is initiated at the instance of members or creditors. The liquidator on completion of liquidation process shall make an application to the National Company Law Tribunal for seeking orders for dissolution of the corporate person in voluntary liquidation in terms of Section 59(7). The Tribunal having been satisfied passes orders for dissolution as per Section 59(8). A copy of such order is forwarded within 14 days to Registrar of Companies by the Tribunal.