Liquidator
When the Corporate Insolvency Resolution Process does not result in an approved resolution plan, the company may enter the liquidation process under the Insolvency and Bankruptcy Code, 2016 (IBC). In such cases, the National Company Law Tribunal (NCLT) appoints a Liquidator to manage the liquidation of the corporate debtor in accordance with the provisions of the law.
The Liquidator is responsible for taking control of the company’s assets, evaluating their value, and realising them through a transparent and structured process. The objective of liquidation is to sell the assets of the company and distribute the proceeds among creditors and other stakeholders in the order of priority specified under the Insolvency and Bankruptcy Code.
Once the liquidation order is passed, the powers of the board of directors and management cease, and the Liquidator takes full control of the company’s assets, records, and operations. The Liquidator ensures that the liquidation process is conducted fairly, efficiently, and in compliance with the applicable regulations.
The process involves identifying and valuing assets, inviting claims from creditors, selling assets through auctions or other permitted methods, and distributing the proceeds to stakeholders according to the statutory waterfall mechanism prescribed under the IBC.
Our Liquidator Services
We provide professional assistance in managing and executing the liquidation process while ensuring strict compliance with the Insolvency and Bankruptcy Code and regulatory guidelines.
Initiation of Liquidation Process
Assistance with the commencement of the liquidation process following the order passed by the National Company Law Tribunal.
Public Announcement and Claim Collection
Preparation and publication of public announcements inviting claims from creditors and stakeholders.
Verification of Claims
Reviewing and verifying claims submitted by creditors to determine the validity and priority of each claim.
Asset Identification and Valuation
Taking custody and control of the company’s assets, conducting asset verification, and arranging valuation by registered valuers.
Asset Realisation
Selling assets through auctions, private sales, or other approved methods to maximise value for creditors.
Distribution of Proceeds
Distributing the realised funds among creditors and stakeholders in accordance with the priority framework defined under the Insolvency and Bankruptcy Code.
Regulatory Filings and Compliance
Preparing and submitting necessary reports, documentation, and filings with the NCLT and the Insolvency and Bankruptcy Board of India (IBBI).
F.A.Q.
A Liquidator is an insolvency professional appointed by the National Company Law Tribunal to conduct the liquidation of a company when a resolution plan is not approved or when liquidation is ordered.
The liquidation process begins when the National Company Law Tribunal passes a liquidation order under the Insolvency and Bankruptcy Code.
The Liquidator is responsible for collecting and selling the company’s assets, verifying creditor claims, and distributing the proceeds among stakeholders according to the legal priority.
Once liquidation begins, the company’s management powers cease and the Liquidator takes control of the assets and affairs of the company.
Creditors are paid according to the priority order known as the waterfall mechanism as prescribed under Section 53 of the Insolvency and Bankruptcy Code.
In certain cases, the Liquidator may continue the business for a limited period if it helps maximise the value of the assets during liquidation.
The National Company Law Tribunal supervises the liquidation process and passes necessary orders to ensure compliance with the provisions of the Insolvency and Bankruptcy Code.
