The past few weeks have seen debates surrounding the Parliamentary Standing Committees call for an overhaul of the Insolvency and Bankruptcy Code owing to low recovery rates and delays in resolution process.
Citing a high rate of pendency and incidences of liquidation, the report laments colossal haircuts taken by creditors. Amongst other things, the report has suggested that Regulation 32(e) of the Liquidation Regulations, which provides for sale of the corporate debtor as a going concern, be deleted.
Placing reliance upon a decision which is pending adjudication before the National Company Law Appellate Tribunal, the report states that Regulation 32(e) falls foul of the provisions of the Code since liquidation mandates dissolution but…
Read the full article at: https://thewire.in/business/the-liquidation-of-a-company-as-a-going-concern
