{"id":35973,"date":"2025-03-04T15:15:57","date_gmt":"2025-03-04T09:45:57","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/learn\/?p=35973"},"modified":"2026-01-31T10:26:58","modified_gmt":"2026-01-31T04:56:58","slug":"waterfall-mechanism-under-ibc","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/","title":{"rendered":"The &#8216;Waterfall Mechanism&#8217; Under IBC"},"content":{"rendered":"<p>India introduced the <a href=\"https:\/\/www.kanakkupillai.com\/learn\/insolvency-and-bankruptcy-code-overview\/\">Insolvency and Bankruptcy Code (IBC)<\/a> in 2016. It has revolutionized how financially distressed companies are treated. One of the most important aspects of IBC is the Waterfall Mechanism, which determines the order in which creditors should be paid when a company is being liquidated.<\/p>\n<p>It promotes equitable and open distribution of resources. In this blog, we will break down each element of the Waterfall Mechanism under IBC, exploring its significance, how the order of payoff works, and what effects this has on resolution operations.<\/p>\n<h2>What is the Waterfall Mechanism in IBC?<\/h2>\n<p>The Waterfall Mechanism in the Insolvency and Bankruptcy Code, 2016 refers to how assets from a company\u2019s liquidation are divided among its creditors. This mechanism sets an exact order in which payments are to be made, giving priority to those who have a clear legal right and form of indebtedness with the debtor.<\/p>\n<p>This mechanism is designed to bring clarity and fairness to the payment of liabilities in a way that will help solve insolvent situations.<\/p>\n<h2>Importance of the Waterfall Mechanism In IBC<\/h2>\n<p>The Waterfall Mechanism Matter in IBC.<\/p>\n<ul>\n<li><strong>Fairness:<\/strong> Through the procedure, creditors shall be paid according to a standardized and transparent order that reflects existing legal priorities.<\/li>\n<li><strong>Clarity:<\/strong> Settling payments in a clear order reduces confusion and enables all stakeholders to know exactly what their positions are.<\/li>\n<li><strong>Speed:<\/strong> The mechanism speeds up how assets are distributed, a vital part of expediting the resolution of cases under IBC.<\/li>\n<li><strong>Lawfulness:<\/strong> It ensures that IBC provisions are kept to, which will help preserve the integrity of the insolvency procedure as it serves as an effective deterrent against bankrupt behavior being repeated.<\/li>\n<\/ul>\n<h2>Understanding the Sequence under the Waterfall Mechanism in IBC<\/h2>\n<p>Rules of the Waterfall Mechanism priority creditor payment. According to this system, in case of bankruptcy, the most important needs like wages and statutory obligations received to date are taken care of first.<\/p>\n<p>Below is the order of priority for the distribution of proceeds should we wind up.<\/p>\n<p><span style=\"color: #000000; font-family: Nunito; font-size: 21px; font-weight: bold;\">1. Costs of Insolvency Resolution Process (IRP)<\/span><\/p>\n<p>The Waterfall Mechanism gives priority to Insolvency Resolution Process Costs. These include any expenses borne by an Insolvency Professional (IP) in managing the IRP.<\/p>\n<ul>\n<li>Comprising: The cost of liquidators, counsel, and other professional services required for the job.<\/li>\n<li>Importance: It is essential for the smooth progress of a liquidation process to ensure debts relating to that process are paid before any other.<\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-family: Nunito; font-size: 21px; font-weight: bold;\">2. Secured Creditors (with legal priority over unsecured creditors)<\/span><\/p>\n<p>Next come the secured creditors. In secured creditors, fixed assets like property or plant and equipment serve as collateral for loans from them. In case the company is liquidated, they get proceeds from the sale.<\/p>\n<ul>\n<li>Priority of Payments: Secured creditors have priority in the order as they have a legal right to claim on the specific collateral.<\/li>\n<li>Critical Note: Should sale proceeds not cover their debts to these lenders, then they could be further catered for using the Company\u2019s remaining assets in a sequence of priority.<\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-family: Nunito; font-size: 21px; font-weight: bold;\">3. Workmen and Employees Dues<\/span><\/p>\n<p>In the Waterfall Mechanism, workmen and employees are the third groups to be paid. This category includes wages owing to employees as well as other benefits prescribed by law.<\/p>\n<ul>\n<li>Importance: Employees and their claims in the insolvency resolution process take precedence over costs after the company\u2019s operation is carried on by an important part of the workers.<\/li>\n<li>Scope: Everything that is owed for employment, such as unpaid wages, bonuses, and pension contributions.<\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-family: Nunito; font-size: 21px; font-weight: bold;\">4. Government Dues and Statutory Liabilities<\/span><\/p>\n<p>The Government\u2019s claims come next in the order of priority under the Waterfall Mechanism. This category includes all sorts of statutory liabilities, such as taxes owed to the central and state governments, social security payments, and other regulatory fees.<\/p>\n<ul>\n<li>What it includes: Goods and Services Tax (<a href=\"https:\/\/www.kanakkupillai.com\/online-gst-registration\">GST<\/a>), income tax debt, customs duties, other statutory obligations<\/li>\n<li>Significance: Prioritizing the payment of taxes and social security dues promotes stability in the economic and tax structure of the country. Unpaid taxes are usually given one higher priority than other such items in liquidation payouts.<\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-family: Nunito; font-size: 21px; font-weight: bold;\">5. Unsecured Creditors<\/span><\/p>\n<p>Paid after secured creditors and statutory dues have been settled, unsecured creditors are suppliers, vendors, and bondholders whose claims are not backed by collateral.<\/p>\n<ul>\n<li>What it includes: Loans or credit extended to the Company without any form of collateral.<\/li>\n<li>Order of Payment: These creditors generally receive a smaller share than the secured creditors of liquidation proceeds.<\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-family: Nunito; font-size: 21px; font-weight: bold;\">6. Shareholders and Equity Holders<\/span><\/p>\n<p>Under the Waterfall Mechanism, the final recipients of money are the shareholders or equity holders of the company. Only when there is anything left after all creditors have been paid do shareholders receive anything at all?<\/p>\n<ul>\n<li>Important note: Generally, shareholders receive nothing in liquidation, especially when the asset position of the company does not meet debts laid down by creditors.<\/li>\n<li>Priority: Shareholders are in the last line for payment and bear the most risk if liquidation is carried out.<\/li>\n<\/ul>\n<h2>Impact of the Waterfall Mechanism on Creditors<\/h2>\n<p>The Waterfall Mechanism under IBC has a big impact on different types of creditors. It\u2019s arranged in this order: secured creditors first, employees and government dues take second place, another department takes third, an unsecured creditor fourth, and finally stockholders. This kind of priority system means there are fewer conflicts when dealing with liquidation. Conversely, inherent in all its advantages, this type of arrangement can cause problems too, especially for unsecured creditors who never really get a chance to recover much at all.<\/p>\n<h2>Conclusion<\/h2>\n<p>A major function of the Waterfall Mechanism under the Insolvency and Bankruptcy Code (IBC) is its guarantee that during liquidation, creditors will receive payments in a way that is both open and orderly. By means of establishing a clear priority for payment orders, it reduces the danger of disputes and avoids confusion.<\/p>\n<p>Although the mechanism is designed to accommodate all stakeholders, while at the same time, it retains a priority-serving role in distributing key obligations such as wages and taxes to the government, it ensures fairness in the resolution process. This will enable India\u2019s financial and corporate sectors to continue operating with stability.<\/p>\n<p>An understanding of the Waterfall Mechanism is needed by creditors so that they can adjust their expectations when businesses are in bankruptcy proceedings. Similarly, a knowledge of how this mechanism operates can help businesses work through insolvency proceedings with greater confidence.<\/p>\n<p><strong>Related Services<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.kanakkupillai.com\/closure-of-private-limited-company\">Closure of Private Limited Company<\/a><\/li>\n<li><a href=\"https:\/\/www.kanakkupillai.com\/closure-of-limited-liability-partnership-llp\">Closure of LLP<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>India introduced the Insolvency and Bankruptcy Code (IBC) in 2016. It has revolutionized how financially distressed companies are treated. One of the&#8230;<\/p>\n","protected":false},"author":27,"featured_media":35974,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[4782],"tags":[],"class_list":{"0":"post-35973","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ibc"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.1 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The &#039;Waterfall Mechanism&#039; Under IBC<\/title>\n<meta name=\"description\" content=\"Waterfall mechanism under IBC \u2014 learn how assets are prioritized and distributed during insolvency resolution. Simplify complex processes!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The &#039;Waterfall Mechanism&#039; Under IBC\" \/>\n<meta property=\"og:description\" content=\"Waterfall mechanism under IBC \u2014 learn how assets are prioritized and distributed during insolvency resolution. Simplify complex processes!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/\" \/>\n<meta property=\"og:site_name\" content=\"Kanakkupillai Learn\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/kanakkupillaionline\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-04T09:45:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-31T04:56:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.kanakkupillai.com\/learn\/wp-content\/uploads\/2025\/03\/Waterfall-Mechanism-Under-IBC.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1140\" \/>\n\t<meta property=\"og:image:height\" content=\"694\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gaurav Verma\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Kanakkupillai7\" \/>\n<meta name=\"twitter:site\" content=\"@Kanakkupillai7\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gaurav Verma\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/\"},\"author\":{\"name\":\"Gaurav Verma\",\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#\\\/schema\\\/person\\\/09dbce6613797ba2af68c24943d87f5e\"},\"headline\":\"The &#8216;Waterfall Mechanism&#8217; Under IBC\",\"datePublished\":\"2025-03-04T09:45:57+00:00\",\"dateModified\":\"2026-01-31T04:56:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/\"},\"wordCount\":1060,\"publisher\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/Waterfall-Mechanism-Under-IBC.jpg\",\"articleSection\":[\"IBC\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/\",\"url\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/\",\"name\":\"The 'Waterfall Mechanism' Under IBC\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/Waterfall-Mechanism-Under-IBC.jpg\",\"datePublished\":\"2025-03-04T09:45:57+00:00\",\"dateModified\":\"2026-01-31T04:56:58+00:00\",\"description\":\"Waterfall mechanism under IBC \u2014 learn how assets are prioritized and distributed during insolvency resolution. Simplify complex processes!\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/Waterfall-Mechanism-Under-IBC.jpg\",\"contentUrl\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/Waterfall-Mechanism-Under-IBC.jpg\",\"width\":1140,\"height\":694,\"caption\":\"The 'Waterfall Mechanism' Under IBC\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/waterfall-mechanism-under-ibc\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The &#8216;Waterfall Mechanism&#8217; Under IBC\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#website\",\"url\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/\",\"name\":\"Kanakkupillai Learn\",\"description\":\"Latest Company Registration &amp; Accounting Related News\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#organization\"},\"alternateName\":\"Kanakkupillai Learn\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#organization\",\"name\":\"Kanakkupillai\",\"alternateName\":\"Kanakkupillai\",\"url\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/kanakkupillai-logo-seo.jpg\",\"contentUrl\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/kanakkupillai-logo-seo.jpg\",\"width\":280,\"height\":280,\"caption\":\"Kanakkupillai\"},\"image\":{\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/kanakkupillaionline\\\/\",\"https:\\\/\\\/x.com\\\/Kanakkupillai7\",\"https:\\\/\\\/in.linkedin.com\\\/company\\\/kanakkupillai\",\"https:\\\/\\\/www.instagram.com\\\/kanakkupillai\\\/\",\"https:\\\/\\\/www.youtube.com\\\/@Kanakkupillai\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/#\\\/schema\\\/person\\\/09dbce6613797ba2af68c24943d87f5e\",\"name\":\"Gaurav Verma\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/27958c8aac09e187022a686b8dde34b4660bb9d98100586d6c1bf90ea60381b3?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/27958c8aac09e187022a686b8dde34b4660bb9d98100586d6c1bf90ea60381b3?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/27958c8aac09e187022a686b8dde34b4660bb9d98100586d6c1bf90ea60381b3?s=96&d=mm&r=g\",\"caption\":\"Gaurav Verma\"},\"description\":\"A Lawyer by profession and a writer by passion, my expertise extends to creating insightful content on topics such as company, GST, accounts payable, and invoice. Expertise in litigation, legal writing, legal research.\",\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/gaurav-verma-b289091a7\\\/\"],\"url\":\"https:\\\/\\\/www.kanakkupillai.com\\\/learn\\\/author\\\/gaurav-verma\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The 'Waterfall Mechanism' Under IBC","description":"Waterfall mechanism under IBC \u2014 learn how assets are prioritized and distributed during insolvency resolution. Simplify complex processes!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/","og_locale":"en_US","og_type":"article","og_title":"The 'Waterfall Mechanism' Under IBC","og_description":"Waterfall mechanism under IBC \u2014 learn how assets are prioritized and distributed during insolvency resolution. Simplify complex processes!","og_url":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/","og_site_name":"Kanakkupillai Learn","article_publisher":"https:\/\/www.facebook.com\/kanakkupillaionline\/","article_published_time":"2025-03-04T09:45:57+00:00","article_modified_time":"2026-01-31T04:56:58+00:00","og_image":[{"width":1140,"height":694,"url":"https:\/\/www.kanakkupillai.com\/learn\/wp-content\/uploads\/2025\/03\/Waterfall-Mechanism-Under-IBC.jpg","type":"image\/jpeg"}],"author":"Gaurav Verma","twitter_card":"summary_large_image","twitter_creator":"@Kanakkupillai7","twitter_site":"@Kanakkupillai7","twitter_misc":{"Written by":"Gaurav Verma","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":["Article","BlogPosting"],"@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/#article","isPartOf":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/"},"author":{"name":"Gaurav Verma","@id":"https:\/\/www.kanakkupillai.com\/learn\/#\/schema\/person\/09dbce6613797ba2af68c24943d87f5e"},"headline":"The &#8216;Waterfall Mechanism&#8217; Under IBC","datePublished":"2025-03-04T09:45:57+00:00","dateModified":"2026-01-31T04:56:58+00:00","mainEntityOfPage":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/"},"wordCount":1060,"publisher":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/#organization"},"image":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/#primaryimage"},"thumbnailUrl":"https:\/\/www.kanakkupillai.com\/learn\/wp-content\/uploads\/2025\/03\/Waterfall-Mechanism-Under-IBC.jpg","articleSection":["IBC"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/","url":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/","name":"The 'Waterfall Mechanism' Under IBC","isPartOf":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/#primaryimage"},"image":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/#primaryimage"},"thumbnailUrl":"https:\/\/www.kanakkupillai.com\/learn\/wp-content\/uploads\/2025\/03\/Waterfall-Mechanism-Under-IBC.jpg","datePublished":"2025-03-04T09:45:57+00:00","dateModified":"2026-01-31T04:56:58+00:00","description":"Waterfall mechanism under IBC \u2014 learn how assets are prioritized and distributed during insolvency resolution. Simplify complex processes!","breadcrumb":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/#primaryimage","url":"https:\/\/www.kanakkupillai.com\/learn\/wp-content\/uploads\/2025\/03\/Waterfall-Mechanism-Under-IBC.jpg","contentUrl":"https:\/\/www.kanakkupillai.com\/learn\/wp-content\/uploads\/2025\/03\/Waterfall-Mechanism-Under-IBC.jpg","width":1140,"height":694,"caption":"The 'Waterfall Mechanism' Under IBC"},{"@type":"BreadcrumbList","@id":"https:\/\/www.kanakkupillai.com\/learn\/waterfall-mechanism-under-ibc\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.kanakkupillai.com\/learn\/"},{"@type":"ListItem","position":2,"name":"The &#8216;Waterfall Mechanism&#8217; Under IBC"}]},{"@type":"WebSite","@id":"https:\/\/www.kanakkupillai.com\/learn\/#website","url":"https:\/\/www.kanakkupillai.com\/learn\/","name":"Kanakkupillai Learn","description":"Latest Company Registration &amp; Accounting Related News","publisher":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/#organization"},"alternateName":"Kanakkupillai Learn","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.kanakkupillai.com\/learn\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.kanakkupillai.com\/learn\/#organization","name":"Kanakkupillai","alternateName":"Kanakkupillai","url":"https:\/\/www.kanakkupillai.com\/learn\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.kanakkupillai.com\/learn\/#\/schema\/logo\/image\/","url":"https:\/\/www.kanakkupillai.com\/learn\/wp-content\/uploads\/2026\/03\/kanakkupillai-logo-seo.jpg","contentUrl":"https:\/\/www.kanakkupillai.com\/learn\/wp-content\/uploads\/2026\/03\/kanakkupillai-logo-seo.jpg","width":280,"height":280,"caption":"Kanakkupillai"},"image":{"@id":"https:\/\/www.kanakkupillai.com\/learn\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/kanakkupillaionline\/","https:\/\/x.com\/Kanakkupillai7","https:\/\/in.linkedin.com\/company\/kanakkupillai","https:\/\/www.instagram.com\/kanakkupillai\/","https:\/\/www.youtube.com\/@Kanakkupillai"]},{"@type":"Person","@id":"https:\/\/www.kanakkupillai.com\/learn\/#\/schema\/person\/09dbce6613797ba2af68c24943d87f5e","name":"Gaurav Verma","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/27958c8aac09e187022a686b8dde34b4660bb9d98100586d6c1bf90ea60381b3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/27958c8aac09e187022a686b8dde34b4660bb9d98100586d6c1bf90ea60381b3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/27958c8aac09e187022a686b8dde34b4660bb9d98100586d6c1bf90ea60381b3?s=96&d=mm&r=g","caption":"Gaurav Verma"},"description":"A Lawyer by profession and a writer by passion, my expertise extends to creating insightful content on topics such as company, GST, accounts payable, and invoice. Expertise in litigation, legal writing, legal research.","sameAs":["https:\/\/www.linkedin.com\/in\/gaurav-verma-b289091a7\/"],"url":"https:\/\/www.kanakkupillai.com\/learn\/author\/gaurav-verma\/"}]}},"modified_by":"Sumitha","_links":{"self":[{"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/posts\/35973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/comments?post=35973"}],"version-history":[{"count":3,"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/posts\/35973\/revisions"}],"predecessor-version":[{"id":44627,"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/posts\/35973\/revisions\/44627"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/media\/35974"}],"wp:attachment":[{"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/media?parent=35973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/categories?post=35973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kanakkupillai.com\/learn\/wp-json\/wp\/v2\/tags?post=35973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}