Commercial wisdom in insolvency supports liquidation when creditors approve it and no viable resolution plan remains.

Liquidation was directed after the committee of creditors overwhelmingly resolved to proceed with it and no viable resolution plan remained. The resolution process had already been extended, the approved plan was later sought to be withdrawn by the resolution applicant, and no counter to liquidation was placed before the adjudicating authority. Applying the settled principle that it cannot replace the commercial wisdom of the committee of creditors, the tribunal found the statutory conditions for liquidation satisfied and appointed the resolution professional as liquidator.

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Issues: Whether liquidation of the corporate debtor was to be ordered on the resolution professional's application after the committee of creditors approved liquidation and no viable resolution plan remained.

Analysis: The corporate insolvency resolution process had been undertaken, extensions had been granted, and the resolution plan approved earlier was later sought to be withdrawn by the resolution applicant. The committee of creditors thereafter resolved by an overwhelming majority to proceed with liquidation and to appoint the resolution professional as liquidator. In the absence of any counter and in view of the settled principle that the adjudicating authority cannot substitute its view for the commercial decision of the committee of creditors, the statutory conditions for liquidation were satisfied.

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

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