Liquidation proceedings bar later approval of a resolution plan or related declaratory relief once liquidation has commenced.

Once the corporate debtor had been ordered into liquidation under the Insolvency and Bankruptcy Code, 2016 and a liquidator appointed, applications seeking a declaration that rejection of the resolution plan was contrary to law and seeking approval of that plan could not be entertained. The tribunal treated the matter as having moved beyond the resolution stage, and held that the declaratory and approval reliefs were inconsistent with the liquidation order then in force. The applications were therefore not maintainable and were liable to be dismissed.

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Issues: Whether the applications seeking declaration that the rejection of the resolution plan was contrary to law and seeking approval of the resolution plan were maintainable after an order for liquidation had been passed.

Analysis: The corporate debtor had already been directed to be liquidated under the Insolvency and Bankruptcy Code, 2016, and a liquidator had been appointed. In that , the pending applications seeking approval of the resolution plan and related declaratory reliefs could not be entertained under the extant statutory framework governing liquidation. The proceedings had moved beyond the resolution stage, and the reliefs claimed were inconsistent with the liquidation order already in force.

Conclusion: The applications were not maintainable and were liable to be dismissed.

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