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This article Difference between a liquidator and an insolvency professional aims at providing clarity on the distinct roles of a them. Both of these positions are central to guiding a company through their financial difficulties, although the engagement of both in the insolvency process is distinct. While an IP has the main responsibility with supervising […]
A Liquidator: Powers and Functions under IBC, with reference to section 5(18) of the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”), is an insolvency professional who is appointed by the court, which in insolvency law, is the National Company Law Tribunal (NCLT) to manage a company’s liquidation process when it is […]
The Supreme Court’s take on personal insolvency in IBC has brought significant focus on the role of personal guarantors in insolvency law. A personal guarantor, by promising to repay corporate debts, faces substantial liabilities if corporate debtors default, putting their personal assets at risk. This interpretation under IBC highlights potential disadvantages for guarantors and raises […]
Understanding the insolvency process under the Insolvency and Bankruptcy Code, 2016, it’s crucial to grasp the difference between financial debt and operational debt. The core distinction lies in the nature of the debt, which determines the rights, roles, and responsibilities of the creditors. Financial creditors hold a significant influence, particularly in corporate insolvency resolution and […]
When an insolvent company goes into liquidation, employees face a challenging period as the company ceases operations and ultimately stops all salary payments. During this time, understanding How Does Liquidation Affect Employees becomes crucial, as unpaid wages typically become a claim in the liquidation process. For employees, knowing their rights and exploring any available remedies […]
In the insolvency and bankruptcy domain, insolvency professionals (IPs) and registered valuers (RVs) have crucial but distinctive roles within the insolvency process under the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”). While IPs manage the overall insolvency resolution process, ensuring that it progresses in accordance with legal and regulatory requirements, RVs […]
Liquidation essentially means that the revival or restructuring of the company was unsuccessful. The Company Liquidation Process is the final step of the insolvency process under the Insolvency and Bankruptcy Code, 2016 (IBC). Under IBC and the relevant regulations, there is a systematic manner in handling the process of company liquidation What is liquidation of […]
To understand the difference between the SARFAESI Act and IBC, it’s important to recognize that the Insolvency and Bankruptcy Code (IBC), introduced in 2016, was designed to streamline the process of managing an insolvent’s liabilities and creditor claims through a structured, time-bound resolution. Unlike the SARFAESI Act, which primarily empowers secured creditors to seize and […]
As per the Insolvency and Bankruptcy Code, 2016 and the relevant regulations, an Information Memorandum under IBC is a comprehensive document drafted by the resolution professional that contains all the relevant information of the corporate debtor to be conveyed to potential buyers and investors. This document also assists the insolvency professional in preparing the resolution […]
As per the resolution plan under IBC submitted by the insolvency professional, the Committee of Creditors and the Adjudicating Authority can decide whether the company is to be liquidated. Understanding the exact format of a resolution plan under IBC is crucial to ensuring the success of the resolution process, which may lead to the financially […]
