Liquidation follows failed insolvency resolution when no plan is approved and the Committee of Creditors declines extension.

When the Corporate Insolvency Resolution Process ends without any approved resolution plan and the Committee of Creditors does not extend the process, liquidation becomes the statutory consequence under the Insolvency and Bankruptcy Code. The liquidation order is accompanied by consequential directions for appointment of a liquidator, publication of liquidation, cessation of the existing moratorium, commencement of the liquidation moratorium, discharge of employees and workmen, and continuation of the process under the Liquidation Process Regulations. The outgoing resolution professional's dues and costs are to be paid by the financial creditors or Committee of Creditors.

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Issues: Whether liquidation of the corporate debtor was warranted on failure of the Corporate Insolvency Resolution Process, and whether consequential directions including appointment of a liquidator and payment of the outgoing resolution professional's dues were liable to be issued.

Analysis: The Corporate Insolvency Resolution Process had run its course, no resolution plan had been received, and the Committee of Creditors declined to extend the process. In view of the absence of any prospective resolution applicant acceptable to the Committee of Creditors, the process could not be continued and liquidation became the appropriate statutory course. Consequential directions were also required to be issued for appointment of a liquidator, publication of liquidation, cessation of the existing moratorium, commencement of the fresh moratorium applicable to liquidation, discharge of employees and workmen, and continuation of liquidation in terms of the Code and the Liquidation Process Regulations. The dues and costs of the outgoing resolution professional were directed to be paid by the financial creditors/Committee of Creditors.

Conclusion: Liquidation of the corporate debtor was ordered, a liquidator was appointed, and consequential liquidation directions were issued, including payment of the outstanding fees and costs of the outgoing resolution professional.

Final Conclusion: The corporate debtor was taken into liquidation upon failure of the resolution process, with all statutory consequences flowing from liquidation put into effect, while ancillary directions were made for payment of the resolution professional's dues.

Ratio Decidendi: Where the Corporate Insolvency Resolution Process ends without an approved resolution plan and the Committee of Creditors refuses extension, liquidation follows as the statutory consequence, together with the incidental directions mandated by the Insolvency and Bankruptcy Code and the Liquidation Process Regulations.

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