2.5.14:Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

14. Early dissolution.

Any time after the preparation of the Preliminary Report, if it appears to the liquidator that-

(a) the realizable properties of the corporate debtor are insufficient to cover the cost of the liquidation process; and

(b) the affairs of the corporate debtor do not require any further investigation;

he shall consult the consultation committee and if it advises for early dissolution, he may apply, along with a detailed report incorporating the views of the consultation committee, to the Adjudicating AuthoritySubstituted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 dated 12.02.2024. To view the notification, Click here. he may apply to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution.
he shall place the agenda in this regard before the committee and if it decides by a voting share of not less than sixty-six percent. for early dissolution, he shall apply, along with a detailed report incorporating the decision of the committee, to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolutionSubstituted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here