Liquidation after failed CIRP: expiry of the resolution period without an approved plan triggers statutory winding up under the Code.

Where the CIRP period expires without approval of any resolution plan, liquidation follows as the statutory consequence under the Code, and further continuation of the process is unnecessary where it would only delay resolution or liquidation. On that basis, the Tribunal directed commencement of liquidation of the corporate debtor and held that an eligible insolvency professional from the IBBI panel, having given written consent, could be appointed as Liquidator. The resolution professional's request for liquidation was accepted, and consequential directions were issued for public announcement and conduct of the liquidation process.

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Issues: Whether the Corporate Debtor was liable to be placed in liquidation on expiry of the CIRP period without an approved resolution plan, and whether a Liquidator could be appointed from the panel of insolvency professionals.

Analysis: The CIRP had run its course, no resolution plan had secured the requisite approval of the Committee of Creditors, and the continuation of the process beyond the permissible period would only delay the statutory objective of timely resolution or liquidation. The Resolution Professional had also sought liquidation in terms of the Code, and the Tribunal found that an eligible insolvency professional from the IBBI panel had given written consent to act as Liquidator. In these circumstances, liquidation was the appropriate statutory consequence and appointment of a Liquidator was warranted.

Conclusion: The Corporate Debtor was ordered to be liquidated and Pankaj Srivastava was appointed as Liquidator.

Final Conclusion: The proceeding resulted in commencement of liquidation of the Corporate Debtor with consequential directions for public announcement and conduct of the liquidation process under the Code.

Ratio Decidendi: Where the CIRP period has expired and no resolution plan has been approved, liquidation follows as the statutory consequence, and the Tribunal may appoint a consenting eligible insolvency professional as Liquidator.

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