The liquidation of a company and sale of stressed assets on a piecemeal manner may not be the best way as valuations could further dip and may be detrimental to the interest of various stakeholders as also lenders.
The Insolvency and Bankruptcy Code, seeking to facilitate resolution plans guided by the National Company Law Tribunals, ultimately paves way for liquidation of a company if there is no resolution plan during the 270-day resolution phase.
In the liquidation process, a company ceases to be a going concern and its legal identity gets extinguished. The role of the liquidator appointed by NCLT is not to run the entity but to carry out all deeds necessary for liquidating the entity. He holds the liquidation estate as a fiduciary fo…
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