Nearly all discussions and coverages on the Insolvency and
Bankruptcy Code, 2016 ("Code"),
highlight the process of Resolution of Corporate persons, which is
the first objective of the Code. But maximization of value of
assets is a close second, and if we refer to the statistics of the
matters referred under the Code, we will find that far more cases
finally go for Liquidation, hence, it is important to discuss this
process.
INITIATION OF LIQUIDATION:
Liquidation may be initiated under Section 33 of the Code when
Adjudicating Authority ("AA") either
does not receive the Resolution Plan under Section 30(6) of the
Code or the maximum period prescribed for corporate insolvency
resolution process expires or in case where AA rejects the
resolution plan under Section 31 of the Code. Further, the
Committee of Creditors ("CoC") may also,
with at least 66 % votes, decide to liquidate the Corporate Debtor
("CD") under Section 33(2), any time
before the resolution plan is
