Insolvency and Bankruptcy Board of India (IBBI) Chairman Ravi Mital said there is a growing need to improve liquidation outcomes under the Insolvency and Bankruptcy (IBC) Code, 2016.
“It is observed that till December 2024, in the completed liquidation cases, the amount realised by claimants has been very low as compared to the Corporate Insolvency Resolution Process (CIRP), and in some cases it has been even lower than the liquidation value,” he said in the IBBI’s quarterly newsletter for October-December 2024.
The main objective of the IBC is resolution of distressed companies. However, when all attempts to resolve the company fail, the next alternative is liquidation of the company involving sale of assets of the company and…
