The omission of going concern sales aims to enhance the efficacy of the resolution process by limiting the assessment of commercial viability to the corporate insolvency resolution process stage, while keeping the liquidation process limited to dissolution. However, it fails to take account of the implications of the same, such as the loss of goodwill and employment.

The 2025 amendment is an attempt to draw a line in the murky sand between resolution and liquidation. Ideal value maximization lies not in how fast we close a company, but in how effectively we give it a chance to recover while it still can.

In this article, the author identifies two major challenges revealed by the impugned judgments: lack of a statutory time limit to implement resolution plans and imprecise role of monitoring committees in ensuring implementation of resolution plans.

The recent amendment to the Liquidation Regulations has introduced a measure of certainty and clarity for homebuyers.