{"id":4848,"date":"2022-08-19T05:18:53","date_gmt":"2022-08-19T05:18:53","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4848"},"modified":"2022-08-19T05:37:08","modified_gmt":"2022-08-19T05:37:08","slug":"initiation-of-liquidation-under-the-ibc","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/","title":{"rendered":"Overview on Initiation of Liquidation under the IBC"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4849\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Initiation-of-Liquidation-under-the-IBC.jpg\" alt=\"Initiation of Liquidation under the IBC\" width=\"829\" height=\"464\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d01027e83c5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d01027e83c5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/#Initiation_of_Liquidation_under_the_IBC\" title=\"Initiation of Liquidation under the IBC\">Initiation of Liquidation under the IBC<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/#Who_can_order_for_Liquidation\" title=\"Who can order for Liquidation?\">Who can order for Liquidation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/#When_can_be_liquidation_order_can_be_pass_by_NCLT\" title=\"When can be liquidation order can be pass by NCLT ?\u00a0\">When can be liquidation order can be pass by NCLT ?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/#Initiation_of_Liquidation_Section_33_on_IBC\" title=\"Initiation of Liquidation ( Section 33 on IBC)\u00a0\">Initiation of Liquidation ( Section 33 on IBC)\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/#Immediate_Effects_of_Liquidation_Order_by_NCLT\" title=\"Immediate Effects of Liquidation Order by NCLT\">Immediate Effects of Liquidation Order by NCLT<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Initiation_of_Liquidation_under_the_IBC\"><\/span><span style=\"color: #ff0000;\"><strong><u>Initiation of Liquidation under the IBC<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Who_can_order_for_Liquidation\"><\/span><span style=\"color: #000080;\"><strong><u>Who can order for Liquidation?<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>\u201cAdjudicating Authority\u201d, for the purposes of Insolvency and Bankruptcy Code, means National Company Law Tribunal constituted under section 408 of the Companies Act, 2013.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"When_can_be_liquidation_order_can_be_pass_by_NCLT\"><\/span><span style=\"color: #000080;\"><strong><u>When can be liquidation order can be pass by NCLT ?\u00a0<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Initiation_of_Liquidation_Section_33_on_IBC\"><\/span><span style=\"color: #000080;\"><strong><u>Initiation of Liquidation ( Section 33 on IBC)\u00a0<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #ffcc00;\"><strong>The liquidation order can be passed:-<\/strong><\/span><\/p>\n<ul>\n<li>Where the NCLT (Adjudicating Authority) does not receive a resolution plan\n<ul>\n<li>before the expiry of Corporate Insolvency Resolution Process (under Section 30(6) of IBC) OR<\/li>\n<li>any permitted extended date by NCLT (under Section 33(1)(a))<\/li>\n<\/ul>\n<\/li>\n<li>The NCLT rejects the resolution plan under Section 31 for the \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 non-compliance of the requirements specified therein \u2013 (under Section 33(1)(b))<\/li>\n<\/ul>\n<ul>\n<li>Where the resolution professional, at any time during the Corporate Insolvency Resolution Process <em>but <\/em>before confirmation of resolution plan, intimates the NCLT of the decision of the COC (approved by not less than 66% of the voting share) to liquidate the corporate debtor, the adjudicating authority shall pass a liquidation order.- (under Section 33(2))<\/li>\n<\/ul>\n<ul>\n<li>The Committee of Creditors\u00a0may take the decision to liquidate the corporate debtor, any time after its constitution under Section 21(1) and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum<\/li>\n<li>Where the resolution plan approved by the NCLT is contravened by the concerned corporate debtor, any person other than the corporate debtor, whose interests are prejudicially affected by such contravention, may make an application to the NCLT for a liquidation order- Section\u00a0 33(3) and,<\/li>\n<li>if the adjudicating authority determines that the corporate debtor has contravened the provisions of the resolution plan, it shall pass a liquidation order.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Immediate_Effects_of_Liquidation_Order_by_NCLT\"><\/span><span style=\"color: #000080;\"><strong><u>Immediate Effects of Liquidation Order by NCLT<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-4853\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Immediate-Effects-of-Liquidation-Order-by-NCLT..jpg\" alt=\"Immediate Effects of Liquidation Order by NCLT.\" width=\"820\" height=\"459\" \/><\/p>\n<p><span style=\"color: #ffcc00;\"><strong>When a liquidation order has been passed:-<\/strong><\/span><\/p>\n<ul>\n<li>No suit or other legal proceeding shall be instituted by or against the corporate debtor- Section 33(5).<\/li>\n<li>Provided that a suit or other legal proceeding may be instituted by the liquidator, on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority.<\/li>\n<li>IBC Provisions of Section 33(5) shall not apply to legal proceedings in relation to such transactions as may be notified by the central government in consultation with any financial sector regulator.<\/li>\n<li>The order for liquidation shall be deemed to be a notice of discharge to the officers, employees and workmen of the corporate debtor, except when the business of the corporate debtor is continued during the liquidation process by the liquidator.<\/li>\n<li>All powers of the Board of Directors , Key Managerial Personnel&#8217;s &amp; partners of the corporate debtors, as the case may be, shall cease to have effect and be vested in the liquidator.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Initiation of Liquidation under the IBC Who can order for Liquidation? \u201cAdjudicating Authority\u201d, for the purposes of Insolvency and Bankruptcy Code, means National Company Law Tribunal constituted under section 408 of the Companies Act, 2013. When can be liquidation order can be pass by NCLT ?\u00a0 Initiation of Liquidation ( Section 33 on IBC)\u00a0 The &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[937],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4848"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4848"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4848\/revisions"}],"predecessor-version":[{"id":4854,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4848\/revisions\/4854"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}