HB on Liquidation Process and Voluntary Liquidation Process under The Insolvency and Bankruptcy Code, 2016
Introduction
Every business face life cycle comprising of phases: Birth, Growth, Maturity, Decline and at times Rebirth.
In a dynamic, challenging and competitive business environment sometimes businesses face financial distress perhaps in a phase of decline and are unable to meet the financial obligations. In such cases businesses need timely resolution of insolvency and if that is not possible then orderly exit may be required to overcome the situation. To fulfil this need, The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted with the objective of consolidating and amending the laws relating to re-organisation and
insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner. The purpose of the Code is maximisation of value of assets, promote entrepreneurship and balance the interest of all stakeholders.
