Liquidation under the Insolvency Code follows when creditors reject the resolution plan and the CIRP period expires.

Where the Committee of Creditors rejected the resolution plan, no resolution plan was approved despite repeated opportunities, and the CIRP period had expired, the statutory conditions for liquidation under Section 33 of the Insolvency and Bankruptcy Code, 2016 were satisfied. The adjudicating authority treated the Committee of Creditors' assessment of commercial feasibility as commercial wisdom not open to interference, ordered liquidation of the corporate debtor, and appointed the existing resolution professional as liquidator. Consequential directions followed for cessation of moratorium, investigation into the corporate debtor's affairs, and intimation to tax and regulatory authorities.

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Issues: Whether liquidation of the corporate debtor was to be ordered under the Insolvency and Bankruptcy Code, 2016 and the resolution professional appointed as liquidator.

Analysis: The Committee of Creditors did not approve any resolution plan despite extensions and repeated opportunities. The resolution plan placed before it was rejected by an overwhelming majority, and the CIRP period had expired. In such circumstances, the statutory conditions for liquidation under Section 33 were satisfied. The decision of the Committee of Creditors on the commercial feasibility of the plan was treated as a commercial wisdom determination not open to interference. Consequential directions were also required regarding cessation of moratorium, appointment of the liquidator, investigation of the corporate debtor's affairs, and intimation to tax and regulatory authorities.

Conclusion: Liquidation was ordered and the resolution professional was appointed as liquidator.

Final Conclusion: The corporate insolvency resolution process ended in liquidation, with the existing resolution professional continuing as liquidator and the statutory liquidation regime made operative.

Ratio Decidendi: Where the Committee of Creditors rejects the resolution plan and the insolvency resolution period has expired, the adjudicating authority must order liquidation under Section 33 of the Insolvency and Bankruptcy Code, 2016.

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