Distribution of unsold assets under liquidation requires committee approval, authority permission, and a supported application explaining why sale is not possible. The liquidator may, after approval of the committee and with the permission of the Adjudicating Authority, distribute amongst stakeholders an asset that cannot be sold, assigned or transferred because of its peculiar nature or other special circumstances. The application must identify the asset, provide its value, detail any sale efforts, and explain the reasons for distribution.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Distribution of unsold assets under liquidation requires committee approval, authority permission, and a supported application explaining why sale is not possible.
The liquidator may, after approval of the committee and with the permission of the Adjudicating Authority, distribute amongst stakeholders an asset that cannot be sold, assigned or transferred because of its peculiar nature or other special circumstances. The application must identify the asset, provide its value, detail any sale efforts, and explain the reasons for distribution.
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