The order of priority for distribution of liquidation proceeds under Section 53 of IBC: CIRP costs → secured creditors → workmen dues (24 months) → employee dues (12 months) → unsecured financial creditors → government dues → remaining debts → equity shareholders.
Last updated: 17 May 2026
The order of priority for distribution of liquidation proceeds under Section 53 of IBC: CIRP costs → secured creditors → workmen dues (24 months) → employee dues (12 months) → unsecured financial creditors → government dues → remaining debts → equity shareholders.
Waterfall Mechanism is significant under IBC because The order of priority for distribution of liquidation proceeds under Section 53 of IBC: CIRP costs → secured creditors → workmen dues (24 months) → employee dues (12 months) → unsecured financial creditors → government dues → remaining debts → equity shareholders.
Waterfall Mechanism under IBC applies to companies, professionals, and individuals involved in IBC-related compliance and regulatory matters in India. Specifically: The order of priority for distribution of liquidation proceeds under Section 53 of IBC: CIRP costs → secured creditors → workmen dues (24 months) → em...