Appointment of liquidator and fee to be paid
Section 34 of the Insolvency and Bankruptcy Code, 2016 deals with appointment of liquidator and fee to be paid. Where the Adjudicating Authority passes an order for liquidation of the corporate debtor under section 33, the resolution professional appointed for the corporate insolvency resolution process under [Chapter II [or for the pre-packaged insolvency resolution process under Chapter III-A] shall subject The Act was enacted on 28 May 2016.
(1) Where the Adjudicating Authority passes an order for liquidation of the corporate debtor under section 33, the resolution professional appointed for the corporate insolvency resolution process under 1 [Chapter II 2[or for the pre-packaged insolvency resolution process under Chapter III-A] shall subject to submission of a written consent by the resolution professional to the Adjudicatory Authority in specified form,] act as the liquidator for the purposes of liquidation unless replaced by the Adjudicating Authority under sub-section (4).
(2) On the appointment of a liquidator under this section, all powers of the board of directors, key managerial personnel and the partners of the corporate debtor, as the case may be, shall cease to have effect and shall be vested in the liquidator.
(3) The personnel of the corporate debtor shall extend all assistance and cooperation to the liquidator as may be required by him in managing the affairs of the corporate debtor and provisions of section 19 shall apply in relation to voluntary liquidation process as they apply in relation to liquidation process with the substitution of references to the liquidator for references to the interim resolution professional.
(4) The Adjudicating Authority shall by order replace the resolution professional, if
(a) the resolution plan submitted by the resolution professional under section 30 was rejected for failure to meet the requirements mentioned in sub-section (2) of section 30; or
(b) the Board recommends the replacement of a resolution professional to the Adjudicating Authority for reasons to be recorded 3 [in writing; or]
4 [(c) the resolution professional fails to submit written consent under sub-section (1).]
(5) For the purposes of 5 [clauses (a) and (c)] of sub-section (4), the Adjudicating Authority may direct the Board to propose the name of another insolvency professional to be appointed as a liquidator. .
(6) The Board shall propose the name of another insolvency professional 4 [along with written consent from the insolvency professional in the specified form,] within ten days of the direction issued by the Adjudicating Authority under sub-section (5).
(7) The Adjudicating Authority shall, on receipt of the proposal of the Board for the appointment of an insolvency professional as liquidator, by an order appoint such insolvency professional as the liquidator.
(8) An insolvency professional proposed to be appointed as a liquidator shall charge such fee for the conduct of the liquidation proceedings and in such proportion to the value of the liquidation estate assets, as may be specified by the Board.
(9) The fees for the conduct of the liquidation proceedings under sub-section (8) shall be paid to the liquidator from the proceeds of the liquidation estate under section 53.
Section 34, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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R. K. Industries (unit-ii) LLP vs Hr Commercials Private Limited
Court's Decision & Legal Precedent
Once a Liquidator, acting in consultation with stakeholders and with the permission of the Adjudicating Authority, decides to abandon an ongoing bidding process and opt for a private sale when a higher offer emerges that better serves the objective of maximizing asset value and expediting the liquidation process, such commercial decision is not amenable to judicial review by the Appellate Authority absent proof of mala fides or arbitrariness. The Liquidator's discretion to select the mode of sale and to change the sale strategy is protected by the express terms of the bidding documents and the provisions of the IBC, and no vested right accrues to a bidder merely by virtue of being selected as an Anchor Bidder in a Swiss Challenge Process.
On this section: Appointment of Liquidator and vesting of powers in the Liquidator
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 34
What have the courts held on Section 34 of the Insolvency and Bankruptcy Code?
R. K. Industries (unit-ii) LLP vs Hr Commercials Private Limited (26 Aug 2022) is the leading judgment on this section among those set out below: Appointment of Liquidator and vesting of powers in the Liquidator.
How do I find court cases under Section 34 of the Insolvency and Bankruptcy Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Insolvency and Bankruptcy Code 34, section 34 Insolvency and Bankruptcy Code, section 34 of the Insolvency and Bankruptcy Code. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with R. K. Industries (unit-ii) LLP vs Hr Commercials Private Limited (26 Aug 2022).
What should I read with Section 34 of the Insolvency and Bankruptcy Code, and has it changed?
Its own text turns on section 19 (Personnel to extend co-operation to interim resolution professional), section 30 (Submission of resolution plan), section 33 (Initiation of liquidation), section 53 (Distribution of assets), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.
When was Section 34 of the Insolvency and Bankruptcy Code enacted?
Section 34 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 34, was enacted on 28 May 2016 as Act 31 of 2016. It is in force as at the date shown on this page.
Other sections of this Act
- 240. Power to make regulations2349 words
- 5. Definitions2326 words
- 3. Definitions1381 words
- 29A. Person not eligible to be resolution applicant1152 words
- 239. Power to make rules963 words
- 196. Powers and functions of Board942 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.