Liquidation follows when no resolution plan secures approval within the corporate insolvency resolution process.

Where no resolution plan secures the required approval within the corporate insolvency resolution process and the CIRP period expires, liquidation follows as the statutory consequence. The resolution professional reported that the revised plan did not obtain the requisite vote of the committee of creditors, leaving no further scope for resolution. On that basis, the adjudicating authority directed liquidation of the corporate debtor and accepted the resolution professional's consent to act as liquidator.

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Issues: Whether, on failure to obtain approval of any resolution plan within the corporate insolvency resolution process, the corporate debtor was liable to be sent into liquidation.

Analysis: The resolution professional reported that no resolution plan had secured the approval required under the Code. The committee of creditors had considered the revised plan and the voting outcome showed that the plan did not receive the requisite approval. In these circumstances, and as the CIRP period had expired, the adjudicating authority found that there was no further scope for resolution and that liquidation was the appropriate statutory consequence. The authority also accepted the resolution professional's consent to act as liquidator.

Conclusion: The corporate debtor was ordered to be liquidated and the resolution professional was appointed as liquidator.

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