Liquidation under the Insolvency Code follows unanimous creditor consent when operations cease and assets are limited.

Liquidation under Section 33(2) of the Insolvency and Bankruptcy Code was addressed where the Committee of Creditors had unanimously resolved to liquidate the corporate debtor. The record reflected that business operations had ceased, remaining assets were limited, and the creditors had taken a final commercial decision to proceed with liquidation. On that basis, the statutory requirements for liquidation were treated as satisfied, with consequential directions for appointment of the liquidator, cessation of the existing moratorium, commencement of liquidation moratorium, and conduct of liquidation under the Code and the Liquidation Process Regulations.

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Issues: Whether the corporate debtor was liable to be put into liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 on the basis of the Committee of Creditors' unanimous decision.

Analysis: The application was moved by the Resolution Professional after the Committee of Creditors, in its meetings, resolved with 100% voting share to liquidate the corporate debtor. The record showed that the corporate debtor had ceased business operations, possessed only limited remaining assets, and the creditors had taken a final commercial decision to proceed with liquidation. In that situation, the statutory requirements for liquidation under Section 33(2) stood satisfied, and consequential directions were also warranted regarding appointment of the liquidator, cessation of the existing moratorium, commencement of liquidation moratorium, and conduct of liquidation in accordance with the Code and the Liquidation Process Regulations.

Conclusion: Liquidation of the corporate debtor was ordered, and the application was allowed.

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