TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) whether further time ought to be granted to enable revival of the corporate debtor and to interfere with the liquidation orders; (ii) whether the liquidator must first explore a compromise or arrangement under section 230 of the Companies Act, 2013 and other revival-oriented steps before proceeding to final liquidation.
Issue (i): whether further time ought to be granted to enable revival of the corporate debtor and to interfere with the liquidation orders.
Analysis: The applications under section 10 of the Insolvency and Bankruptcy Code, 2016 had already been admitted and the liquidation stage had been reached. In that background, the request for additional time beyond the period already granted was declined. The order of liquidation was not interfered with.
Conclusion: The request for further time was rejected and the liquidation orders were left undisturbed.
Issue (ii): whether the liquidator must first explore a compromise or arrangement under section 230 of the Companies Act, 2013 and other revival-oriented steps before proceeding to final liquidation.
Analysis: The liquidation process was held not to be a mere mechanical step towards dissolution. The liquidator was required to act in a manner that preserves the corporate debtor as a going concern as far as possible, including by taking steps for revival through compromise or arrangement under section 230 of the Companies Act, 2013, and by following the liquidation framework under the Insolvency and Bankruptcy Code, 2016. The directions emphasised that sale of assets should follow only after revival efforts fail, and that the process must aim at maximisation of value and protection of stakeholder interests.
Conclusion: The liquidator was directed to first proceed with revival-oriented steps under section 230 and allied liquidation duties before resorting to sale of assets.
Final Conclusion: The appeals did not succeed in securing interference with the liquidation orders, but the liquidation process was moulded by mandatory directions requiring the liquidator to attempt revival and proceed in accordance with the prescribed insolvency framework.
Ratio Decidendi: In liquidation under the Insolvency and Bankruptcy Code, 2016, revival-oriented measures, including a compromise or arrangement under section 230 of the Companies Act, 2013, must be explored before the corporate debtor is finally reduced to liquidation and asset sale.
TaxTMI 
TaxTMI 
