Dissolution Of Corporate Debtor Can Be Sought U/S 54 Of IBC Only After Complete Liquidation: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has ruled that the dissolution of a corporate debtor under Section 54 of the Insolvency and Bankruptcy Code (IBC) can only be sought after the complete liquidation of the debtor’s assets. The ruling clarifies the procedural requirements for seeking dissolution and emphasizes the need to exhaust all avenues for asset recovery before dissolution. The article explains the legal reasoning behind the decision and its implications for insolvency proceedings. It also discusses the importance of ensuring that creditors’ interests are adequately protected during the liquidation process.