Sundar, a Director of Sun Star Limited has approached with following financial summary of the company as at 31st March, 2023 and requested to clarify his doubts in connection with voluntary liquidation process under the

Sundar, a Director of Sun Star Limited has approached with following financial summary of the company as at 31st March, 2023 and requested to clarify his doubts in connection with voluntary liquidation process under the Insolvency and Bankruptcy Code, 2016 (IBC). Liabilities Amount in Crores Assets Amount in Crores Share Capital 2.00 Stocks at current price 1.25 Bank – Term Loan 2.25 Receivables (fully realizable) 0.60 Other Creditors 0.75 Other realizable Current assets 0.65 Cash and Bank Balances 2.50 Sundar, further informed that the Board of Directors of the Company felt that due to rapid changes in technology, their business has become commercially unviable and the Board wants to proceed to voluntarily liquidate the Company. In the light of the above inputs, Sundar has put forward the following questions to you for stating the correct legal position with reference to the provisions of the IBC, 2016, so that he can inform his Board colleagues to take an informed decision: Whether approval from the creditors is required for proceeding with Voluntary Liquidation? If yes, whether prior approval is required from the Bankers?