Dissolution of corporate debtor [ Section 54 ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Dissolution of corporate debtor Application by the Liquidator dissolution [ Section 54 (1) ] Where the assets of the corporate debtor have been completely liquidated, the liquidator shall make an application to the Adjudicating Authority for the dissolution of such corporate debtor. Date of dissolution [ Section 54(2) ] The Adjudicating Authority shall on application filed by the liquidator under sub- section (1) of section 54 order that the corporate debtor shall be dissolved from the date of that order and the corporate debtor shall be dissolved accordingly. Submission of Oder Copy [ Section 54(3) ] A copy of an order under sub-section (2) of section 54 shall within 7 days from the date of such order, be forwarded to the authority with which the corporate debtor is registered. Relevant Case Law Mohan Gems Jewels Pvt. Ltd. Vs. Vijay Verma Anr. - NCLAT Dated 24.08.2021 The Code does not prevent the closure of liquidation process where the corporate debtor is sold as a going concern pursuant to regulation 32(e) of the Liquidation Process Regulations following a closure report filed under regulation 45(3)(a) of the said Regulations. It would be contradictory to observe that closure of liquidation proceedings cannot be done and only dissolution is provided for under the Code. This would demolish the very spirit and objective of the Code.