Abstract

The Insolvency and Bankruptcy Code of 2016 (hereafter referred to as IBC, 2016) has been passed in order to put into operation a very time-bound procedure for the resolution of insolvency for corporate entities, partnership businesses, and individuals. In accordance with the IBC, 2016's framework, an Interim Resolution Professional is responsible for continuing the company's business activities as a going concern until the Committee of Creditors suggests a resolution plan that would allow the company to continue operating after an insolvency resolution. If the resolution approach is unsuccessful, the corporate person is liquidated. However, when a corporate person is liquidated by selling the company's debtor or its business as a continuing concern, the person is not dissolved and continues to exist in the market as a going concern firm. The Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2018 added the initial provision for this liquidation feature under Regulation 32, which dealt with "Manner of sale. " This research will analyse the "going concern" accounting concept and how it relates to insolvency and bankruptcy law, with a particular emphasis on the necessity of the notion of liquidation as a going concern under insolvency and bankruptcy law.

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