Liquidation under insolvency law follows when no resolution plan is received and creditors unanimously reject revival.

Where a corporate insolvency resolution process has been duly initiated and the Committee of Creditors has unanimously concluded that the corporate debtor cannot be revived, liquidation may follow under section 33(2) of the Insolvency and Bankruptcy Code when no resolution plan is received within the prescribed period. The record described a sole financial creditor, no claims from other stakeholders, preparation of the information memorandum, issuance of Form G, receipt of expressions of interest, and failure to submit any viable plan. On that basis, liquidation was ordered, the resolution professional was appointed as liquidator, and consequential liquidation directions, including cessation of moratorium and public announcement, were issued.

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Issues: Whether the corporate debtor was liable to be placed in liquidation under section 33(2) of the Insolvency and Bankruptcy Code, 2016 in the absence of any resolution plan and on the approval of the Committee of Creditors.

Analysis: The record showed that the corporate insolvency resolution process had been duly initiated, the Committee of Creditors consisted of the sole financial creditor, and no claim was received from any other creditor, workmen, or employee. Valuers were appointed, the information memorandum and related documents were prepared, and Form G was issued inviting expressions of interest. Although expressions of interest were received, no resolution plan was submitted within the stipulated time or thereafter. The Committee of Creditors unanimously resolved that the corporate debtor could not be revived and recommended liquidation. In these circumstances, and upon expiry of the resolution period, the statutory basis for continuation of the resolution process no longer survived.

Conclusion: Liquidation of the corporate debtor was ordered, the resolution professional was appointed as liquidator, and the consequential directions regarding public announcement, cessation of moratorium, discharge of employees, and conduct of liquidation were issued in favour of the petitioner.

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