Describe the procedure mentioned under Section 53 of Insolvency and Bankruptcy Code (IBC), 2016 for distribution of assets in case of liquidation.
CS Executive · Setting up of Business Entities and Closure · PYQS · December 2019
Describe the procedure mentioned under Section 53 of Insolvency and Bankruptcy Code (IBC), 2016 for distribution of assets in case of liquidation.
Answer & Explanation:
Section 53 of the Insolvency and Bankruptcy Code, 2016 provides for the manner of distribution of assets in case of liquidation and order of priority of distribution. This order of providing is known as the 'waterfall Arrangement'. Each category of persons comes in priority after the previous one. It is pertinent to note that this order of priority is notwithstanding anything which is contained in any other Central or State law.
Topics: Insolvency and Bankruptcy Code (IBC)
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