Liquidation after failed resolution process under insolvency law, with the Resolution Professional appointed as Liquidator

Where the resolution process had expired without any approved resolution plan, the statutory conditions for liquidation under the Insolvency and Bankruptcy Code were satisfied, and liquidation was ordered. The Committee of Creditors supported liquidation, and because the Resolution Professional was unwilling to act as liquidator, the Tribunal directed appointment in accordance with the Code, with the Resolution Professional to function as Liquidator.

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Issues: Whether the Corporate Debtor was liable to be put into liquidation under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 after expiry of the resolution process period without approval of any resolution plan.

Analysis: The resolution process had run its course, no resolution plan had been received or approved, and the Committee of Creditors concurred with the Resolution Professional that liquidation should follow. The Tribunal noted that the statutory conditions for liquidation were satisfied and that the resolution professional had expressed unwillingness to act as liquidator, warranting appointment in terms of the Code.

Conclusion: Liquidation of the Corporate Debtor was ordered and the Resolution Professional was to function as Liquidator under Section 34(1) of the Insolvency and Bankruptcy Code, 2016.

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