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Winding up of companies is in the jurisdiction of the Courts which can take a decade even after the Company has actually been declared insolvent.
This left the family of the debtor in the position of having to pay the debts in order to obtain the release of the debtor.
Legal meaning of the terms bankruptcy, insolvency, liquidation and dissolution are contested in the Indian legal system.
There is no regulation or statute legislated upon bankruptcy which denotes a condition of inability to meet a demand of a creditor as is common in many other jurisdictions.
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Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors.