Liquidation under the Insolvency and Bankruptcy Code follows expiry of CIRP and absence of an approved resolution plan.

On expiry of the maximum corporate insolvency resolution process period and in the absence of any approved resolution plan, the Tribunal held that liquidation under section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 was warranted. The Committee of Creditors had already resolved to liquidate the corporate debtor, and the record showed that no plan had been approved under section 30(6). Having found the statutory conditions satisfied, the Tribunal ordered liquidation, the moratorium under section 14 ceased, and the Resolution Professional was appointed as Liquidator to carry out the liquidation process under the Code and the applicable regulations.

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Issues: Whether, on completion of the maximum period for the corporate insolvency resolution process and in the absence of any approved resolution plan, the corporate debtor was liable to be ordered into liquidation under section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016.

Analysis: The application was filed by the Resolution Professional after the Committee of Creditors had resolved to liquidate the corporate debtor and after the maximum CIRP period of 270 days had expired. The record showed that no resolution plan had been approved under section 30(6) of the Insolvency and Bankruptcy Code, 2016, and the statutory conditions for invoking section 33(1)(a) were satisfied. Once liquidation was ordered, the moratorium under section 14 ceased, the Liquidator was to exercise the powers contemplated by the Code and the liquidation regulations, and the consequential directions for conduct of liquidation followed.

Conclusion: Liquidation of the corporate debtor was ordered and the Resolution Professional was appointed as Liquidator.

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