Liquidation and personal guarantor recovery can proceed together when creditors unanimously resolve liquidation and no resolution plan is received.

Liquidation may be ordered where the Committee of Creditors unanimously resolves to liquidate the corporate debtor and no resolution plan is received, and the Adjudicating Authority may proceed accordingly. The text also states that a personal guarantor's mortgaged property can be brought within the liquidation-related recovery process where the debt is secured against that property, and section 60(2) permits proceedings concerning the personal guarantor before the same NCLT when corporate insolvency or liquidation is pending. On that basis, liquidation of the corporate debtor was approved, the Resolution Professional was appointed as Liquidator, and the guarantor's mortgaged asset was directed to be proceeded against.

---

---

Issues: Whether liquidation of the corporate debtor could be ordered on the Committee of Creditors' unanimous resolution and whether the mortgaged asset of the personal guarantor could also be brought within the liquidation process.

Analysis: The Committee of Creditors had unanimously decided to liquidate the corporate debtor after no resolution plan was received. The Code permits the Adjudicating Authority to pass a liquidation order where liquidation is resolved before confirmation of a resolution plan. The order further treated the guarantor's mortgaged property as part of the asset pool for recovery, noting that the debt was secured against that property and that section 60(2) of the Code enabled proceedings concerning the personal guarantor before the same NCLT when corporate insolvency or liquidation was pending. On that basis, the distinction between resolution and liquidation was applied to hold that the guarantor's secured asset could be proceeded against in liquidation.

Conclusion: Liquidation of the corporate debtor was approved, the Resolution Professional was appointed as Liquidator, and the mortgaged property of the personal guarantor was directed to be proceeded against for liquidation.

---