IBC- SECTION 33 TO SECTION 34

Section 33 Initiation of Liquidation 

INSOLVENCY AND BANKRUPTCY CODE, SECTION 33 INITIATION OF LIQUIDATION 

• Where the NCLT before the expiry of the CIRP period does not receive a resolution plan or the maximum period permitted for completion of the CIRP is 270 days under section 12 if the NCLT does not receive a resolution plan.

• NCLT rejects the resolution plan u/s31 for the non- compliance with the requirements specified therein.

1. Pass an order requiring the corporate debtor to be liquidated.
2. Issue a public announcement and require such order to be sent to the authority 

• Where the RP at any time during the CIRP but before the confirmation of the resolution plan, then RP intimates the NCLT of the decision of the COC approved by not less than 66% of the voting share to liquidate the corporate debtor, the NCLT shall pass a liquidation order.

• Where the resolution plan approved by the NCLT is contravened by the concerned corporate debtor, make, make an application to NCLT for a liquidation order.

• On receipt of an application if the NCLT determines that the corporate debtor has contravened the provisions of the resolution plan then NCLT pass a liquidation order.

• The Order of liquidation shall be deemed to be a notice of discharge to the officers, employees, and workmen of the corporate debtor, except when the business of the corporate debtor is continued during the liquidation process by the liquidator.

SECTION 33-CHART

Section 34 Appointment of liquidator and fee to be paid 

INSOLVENCY AND BANKRUPTCY CODE, SECTION 34 APPOINTMENT OF LIQUIDATOR AND FEE TO BE PAID 

1. Where the NCLT passes an order for liquidation of the corporate debtor:- RP appointed for the CIRP shall, subject to submission of a written consent by the RP is given to NCLT in the specified form shall act as liquidator for the purposes of liquidation unless by the NCLT.
2. All the powers of the BOD/KMP & partners of the corporate debtor, shall cease to have effect and shall be vested in the liquidator.
3. Personnel of the corporate debtor shall extend all assistance and cooperation to the liquidator.
4. NCLT pass an order to replace the RP, if RP submitted the resolution plan u/s 30 was rejected by NCLT because does not meet the specified requirement mentioned in sub-section (2) of section 30. And also the Board recommends the replacement of an RP to the NCLT for reasons to be recorded in writing the RP fails to submit written consent under sub-section (1).
5. NCLT may direct the Board to propose names of another IP.
6. The Board shall propose the name of another IP within 10 days of the direction issued by the NCLT.
7. NCLT shall, on receipt of the proposal of the board for the appointment of an IP as liquidator of the corporate debtor.
8. IP proposed to be appointed as a liquidator shall such fee for the conduct of the liquidation proceeding to be paid and in such proportion to the value of the liquidation estate assets of the corporate debtor, as may be specified by the board.

SECTION 34-CHART