Liquidation As The Last Option Under The Insolvency And Bankruptcy Code, 2016

Upasana Ghosh, Assistant Professor, Department of Legal Science, Techno India University, West Bengal

ABSTRACT

The principal objective of the Insolvency and Bankruptcy Code, 2016 is to provide a framework for revival of the corporate debtor and to carry on the business as a going concern. The Interim Resolution Professional (IRP) must carry on the business of the company until the Committee of Creditors (COC) proposes a business plan that can keep the corporate business post insolvency resolution, liquidation being the last resort. The initial focus of the IBC is to secure revival and continuation of the corporate debtor by protecting the corporate debtor from a corporate death by liquidation. The Code is thus a useful legislation which puts the corporate debtor back on its feet, not being mere recovery legislation for creditors. Thus, the resolution process is not adversarial to the corporate debtor however, in fact, protective of its interests. The aim of the study shall be to analyze the provisions of the Code as well as the latest judgments of IBC to get a clear idea about the new dimensions relating to functioning of liquidator, reorganization and insolvency resolution, role of COC and the CIRP proceedings and whether improvements are required to make it more effective.

Keywords: liquidation, corporate debtor, resolution, management, judgments, Insolvency and Bankruptcy Code, 2016.