Committee of creditors' unanimous liquidation decision accepted after failure of resolution plans under insolvency law.

Where the corporate insolvency resolution process yields no resolution plan and the committee of creditors unanimously resolves to liquidate, the tribunal will ordinarily accept that commercial wisdom under the Insolvency and Bankruptcy Code, 2016. The record showed repeated invitations for expression of interest, revised eligibility criteria, and continued failure to receive any plan, after which liquidation was approved under section 33(1). The resolution professional was permitted to act as liquidator, and the process was to proceed, as far as possible, with the corporate debtor sold as a going concern.

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Issues: Whether liquidation of the corporate debtor was to be ordered under section 33(1) of the Insolvency and Bankruptcy Code, 2016 on the basis of the committee of creditors' decision and the absence of any resolution plan.

Analysis: The application was supported by the record of the corporate insolvency resolution process, including constitution of the committee of creditors, repeated invitations for expression of interest, modification of eligibility criteria, and the continued failure to receive any resolution plan. The committee of creditors resolved to liquidate the corporate debtor with 100% voting share. In such circumstances, the decision of the committee of creditors in its commercial wisdom was accepted, and no reason was found to interfere with the proposed liquidation. The order also directed that, as far as possible, the corporate debtor be sold as a going concern in the liquidation process.

Conclusion: Liquidation under section 33(1) was ordered and the resolution professional was permitted to continue as liquidator.

Final Conclusion: The application was allowed and the corporate debtor was directed into liquidation, with ancillary directions for sale as a going concern and compliance steps in the liquidation process.

Ratio Decidendi: Where the committee of creditors unanimously resolves to liquidate after failure of the resolution process, the tribunal will ordinarily give effect to that commercial decision under the Insolvency and Bankruptcy Code, 2016.

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