Under the Insolvency and Bankruptcy Code, 2016, which of

Solution

The order of priority during the distribution of assets in the event of liquidation under IBC is as follows:

1. Insolvency Resolution Process Costs (highest priority)
2. Secured creditors , including their dues (after they are paid, if there are any remaining funds)
3. Operational creditors , including employees and workmen (such as wages, unpaid dues)
4. Unsecured creditors (such as suppliers and bondholders)
5. Equity shareholders (last in line for payment)

• Preference shareholders are not prioritized in the liquidation process under the IBC, as they rank after creditors but before equity shareholders .