Section 42 in Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016
42. Distribution.
(1)Subject to the provisions of section 53, the liquidator shall not commence distribution before the list of stakeholders and the asset memorandum has been filed with the Adjudicating Authority.(2)The liquidator shall distribute the proceeds from realization within [ninety days] [Substituted 'six months' by Notification No. IBBI/2019-20/GN/REG047, dated 25.7.2019 (w.e.f. 15.12.2016).] from the receipt of the amount to the stakeholders.(3)The insolvency resolution process costs, if any, and the liquidation costs shall be deducted before such distribution is made.
