The Mirage Of Speedy Liquidation: Critical Analysis Of The IBC Liquidation Framework

Written by: Danish Sharma , BB.A.LL.B (4^th Year ) , School of Law, Lovely Professional University

&

Anish  Sharma , BB.A.LL.B (4^th Year ) , School of Law, Lovely Professional University

Abstract

The Insolvency and Bankruptcy Code, 2016 was enacted to ensure a structured and time-bound process for resolving corporate insolvency. While the Code has strengthened the resolution mechanism, its liquidation framework still faces several procedural and practical challenges. This paper examines the effectiveness of the liquidation process under the IBC and identifies the gaps that prevent timely completion. It analyses judicial interpretations, regulatory developments, and comparative practices to understand the causes of delay and inefficiency. The study concludes that the present liquidation framework, though well intentioned, requires structural reforms to achieve the Code’s objectives of value maximization and swift closure of insolvent entities.

Keywords: Corporate Liquidation, Insolvency and Bankruptcy Code, Liquidator, NCLT, Resolution Professional, Asset Distribution, Judicial Interpretation

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Volume 2 | Issue 1