Abstract

Section 10 and Section 65 of the Insolvency and Bankruptcy Code (IBC) play crucial roles in the resolution and liquidation processes of distressed companies. Section 10 empowers a financial creditor, operational creditor, or corporate debtor to initiate the corporate insolvency resolution process (CIRP) by filing an application before the National Company Law Tribunal (NCLT). This provision emphasizes the debtor's acknowledgment of default and willingness to undergo resolution. On the other hand, Section 65 delineates the circumstances under which a corporate debtor may be liquidated. It provides for the initiation of the liquidation process when the resolution process fails, or the Committee of Creditors (CoC) decides to liquidate the debtor. The interplay between these sections is evident in cases where attempts at resolution prove unsuccessful, leading to the commencement of the liquidation process under Section 65. The interrelationship between Section 10 and Section 65 highlights the IBC's comprehensive framework for addressing corporate insolvency, offering a dual approach that encourages resolution but also provides a mechanism for orderly liquidation when necessary. Together, these provisions contribute to the IBC's overarching goal of maximizing the value of distressed assets while ensuring a fair and efficient insolvency resolution and liquidation process.

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