Liquidation of a company under the Insolvency and Bankruptcy Code (IBC) is some times better than a resolution as it throws opportunity for alternative use of its assets and add value to the country, said NCLAT Technical Member Balvinder Singh.
Suggesting to look into all parameters during the corporate insolvency, Singh said that there are some constraints during the process and the focus should not only be to maximise the value of the stressed assets.
The main focus of the insolvency is that if an organisation has a chance to survive, then it must be allowed to survive, he added.
"Liquidation is throwing assets for an alternative use. It looks like that liquidation is a dirty word. A corporation has one interest - national interest and alternative interest and may add value to the country," he said.
According to him, many times, the companies land in trouble because of the some wrong decision of its management and promoters but that does not mean, they should not be allowed to ...
