Valuation for Insolvency Proceedings

Under the Insolvency and Bankruptcy code, 2016, the valuation of an asset is the base for the corporate firms regarding the resolution process. It is a code that differentiates separate resolution processes for individuals, partnership firms and companies. It is a legal action taken by the court. In insolvency proceedings, a liquidator (someone who sorts the affairs of a firm) appointed by the court liquidates the insolvent’s assets and pays off the proceeds to the creditors. There are separate insolvency resolution processes for companies and individuals. A time limit for completion is set up for corporate sectors. This process enables a company to seek the court, ordering its creditor/ investors to not take an action against them until negotiation is scheduled.