Chapter III (relating to Liquidation Process) of Part II of the IBC, read with the IBBI (Liquidation Process) Regulations, 2016, has no express provision for closure of the liquidation process after an order for liquidation has been made by the AA. To meet the inherent objectives of the Code, it has been considered to provide an option for closure of a voluntary liquidation process after its initiation, with the approval of AA, under the Voluntary Liquidation Regulations. This will provide the stakeholders a streamlined option on the ex-ante basis, rather than knocking at the door of the AA every time or closing a process suo-moto. This will also enable the Board to provide some checks on any possibilities of abuse of the process, where one is closing on its own without informing the AA.
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