Stuck in corporate liquidation hurdles? Here are some solutions
One of the fundamental features of the Insolvency and Bankruptcy Code , 2016 (Code) is to resolve disputes in a timely manner — a window of 180 days extendable to 90 days — — given to the Insolvency Professional to help revive the company. Otherwise, it triggers mandatory liquidation due to non-approval of the resolution plan. Though there is an established process of liquidation devised by the Code, it is seen that the Insolvency Professionals appointed as liquidators do face practical hurdles while undergoing the process of liquidation. Following are some possible hurdles and the underlined solutions. 1. Submission of claims by the Creditors of the Corporate Debtor (CD) The liquidator has to make a public announcement for submission of claims by the creditors of the company. However, some creditors may take the announcement as a repetitive attempt and do not submit their claim. There is also an additional cost and time on the part of creditors to submit their claims i.e...