Liquidation of corporate debtor: order, public notice and bar on new suits where resolution fails or plan is contravened. Liquidation is ordered when resolution fails or a plan is rejected, when the committee of creditors resolves to liquidate before plan confirmation, or when a plan is contravened. The Adjudicating Authority issues a liquidation order that prescribes liquidation procedures, a public announcement, and notice to the registrar. Once ordered, new suits against or by the corporate debtor are barred except those brought by the liquidator with prior approval, and the order operates as a notice of discharge to officers and employees unless business continues under the liquidator.
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.
Liquidation of corporate debtor: order, public notice and bar on new suits where resolution fails or plan is contravened.
Liquidation is ordered when resolution fails or a plan is rejected, when the committee of creditors resolves to liquidate before plan confirmation, or when a plan is contravened. The Adjudicating Authority issues a liquidation order that prescribes liquidation procedures, a public announcement, and notice to the registrar. Once ordered, new suits against or by the corporate debtor are barred except those brought by the liquidator with prior approval, and the order operates as a notice of discharge to officers and employees unless business continues under the liquidator.
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