The liquidator is an insolvency professional on whom all the powers of the Board of Directors, key managerial personnel and the partners, as applicable, of the Corporate Debtor are vested by the Adjudicating Authority upon Liquidation order being passed under section 33. Liquidator holds an quasi judicial position
Where the Adjudicating Authority passes an order for Liquidation of a corporate Debtor initially under CIRP, the Resolution Professional appointed under CIRP shall act as the Liquidator for the purpose of Liquidation unless replaced by the Adjudicating Authority.
Primary duties of a Liquidator :
- To Admit and Reject claims of Creditors,
- Power to access any information system for the purpose of verification of Claims and identification of assets forming part of Liquidation Estate of the Corporate Debtor from sources such as, Information Utility, Credit Information Systems, Central and State Government Agency, database maintained by the Board etc. as specified in Section 37 of the Code.
- To evaluate preferential transactions, if any done by the Corporate Debtor.
- Avoid undervalued transactions
- Distribute the Liquidation proceeds as per Section 53 of the Code.
- Make application for the Dissolution of the Corporate Debtor once all its assets are duly liquidated.