Liquidation under IBC Code PDF
The liquidation process under the IBC is the one that NCLT has to opt for in the absence of a failed insolvency resolution process. However, there are more reasons as to why this process is chosen. Furthermore, the process itself entails a lot of details.
The liquidation process under the IBC is the one that NCLT has to opt for in the absence of a failed insolvency resolution process. However, there are more reasons as to why this process is chosen. Furthermore, the process itself entails a lot of details.
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<strong>Liquidation</strong> Process<br />
<strong>under</strong> <strong>IBC</strong><br />
Presented By:<br />
Registrationwala
What Is <strong>Liquidation</strong><br />
Winding up a firm through<br />
selling its assets for cash is called<br />
liquidation. Under the Insolvency<br />
and Bankruptcy law this is one of<br />
the options to resolve the<br />
insolvency of a corporate debtor.
How Is <strong>Liquidation</strong> Initiated?<br />
<strong>Liquidation</strong> is initiated after:<br />
• The insolvency resolution period has been unsuccessful.<br />
• Majority of COC have voted for liquidation.<br />
• NCLT has decided to fast track the resolution procedure<br />
• The insolvency resolution plan is not followed by the debtor.<br />
https://www.registrationwala.com/knowledge-base/insolvency/bankruptcy/liquidationprocess-<strong>under</strong>-ibc
Who Is A Liquidator?<br />
A liquidator is a business expert whose job it is to valuate, and<br />
properly liquidate the company assets.
How Is A Liquidator<br />
Appointed?<br />
The insolvency professional himself has to act as the liquidator.<br />
However, the following are the steps if a new liquidator is needed.<br />
NCLT<br />
instructs<br />
IBBI for<br />
appoint a<br />
new IP.<br />
IBBI<br />
proposes<br />
the name<br />
of the new<br />
IP within<br />
10 days.<br />
IP is<br />
appointed.<br />
NCLT<br />
formulates<br />
a plan for<br />
the IP to<br />
act as a<br />
liquidator.
What Are The Duties Of<br />
The Liquidator?<br />
1<br />
Consulting with stakeholders<br />
2<br />
Preparing reports<br />
3<br />
4<br />
Money recovery<br />
Preparing asset memorandum<br />
6<br />
5<br />
Asset valuation & Selling the assets<br />
Security interest realization<br />
7<br />
Distributing unsold assets
Process Of <strong>Liquidation</strong><br />
Insolvency resolution failure<br />
Appointment of a liquidator<br />
Liquidator makes public announcements<br />
Submission of preliminary reports<br />
Creation of progress reports
Continue<br />
Maintenance of records and books<br />
Appointing an assisting professional<br />
Recovery of assets<br />
Asset estate creation<br />
Preparation of asset memorandum
Continue<br />
Valuation of assets<br />
Realization of security interests<br />
Selling the assets<br />
Distributing the profits among claimants<br />
Distributing unsold assets among<br />
claimants
Contact us<br />
+91-8882-580-580<br />
support@registrationwala.com<br />
https://www.registrationwala.com/knowledgebase/insolvency/bankruptcy
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