Liquidation after failed resolution process and creditor approval, with claims to be examined by the liquidator during liquidation.
Where the committee of creditors approved liquidation and repeated opportunities to invite resolution plans produced no viable proposal, the adjudicating authority ordered liquidation of the corporate debtor and appointed the resolution professional as liquidator under the insolvency framework. A separate claim lodged by another applicant was not directly admitted at that stage; it was to be examined by the liquidator in accordance with the liquidation process and applicable rules. The result was liquidation of the corporate debtor, cessation of the moratorium, and handling of claims and proceedings through the liquidation mechanism.
Issues: (i) Whether the corporate debtor was liable to be ordered into liquidation and a liquidator appointed. (ii) Whether the claim filed by the other applicant was to be considered during liquidation.
Issue (i): Whether the corporate debtor was liable to be ordered into liquidation and a liquidator appointed.
Analysis: The corporate debtor had already been admitted into corporate insolvency resolution process, repeated extensions for expression of interest did not yield any concrete resolution proposal, and the committee of creditors had approved liquidation with the requisite majority. In these circumstances, liquidation was found to be the appropriate course, and the resolution professional was appointed as liquidator in terms of the Code.
Conclusion: The corporate debtor was ordered to be liquidated and the resolution professional was appointed as liquidator.
Issue (ii): Whether the claim filed by the other applicant was to be considered during liquidation.
Analysis: Since liquidation was directed, the request for direct admission of the claim was not granted as such; instead, the claim was to be examined by the liquidator in accordance with the applicable rules and liquidation process.
Conclusion: The claim was directed to be considered by the liquidator.
Final Conclusion: The proceedings resulted in liquidation of the corporate debtor, cessation of the moratorium, and continuation of all further claims and actions through the liquidation framework under the Code.
Ratio Decidendi: Where the committee of creditors has approved liquidation and no viable resolution plan emerges despite repeated opportunities, the adjudicating authority may order liquidation and appoint a liquidator under the insolvency framework.
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