Expiry of CIRP without a resolution plan triggers liquidation, with the resolution professional eligible to continue as liquidator.

Where the CIRP period expires without receipt of any resolution plan, section 33(1)(a) of the Insolvency and Bankruptcy Code requires liquidation as a statutory consequence. If the committee of creditors has also approved liquidation after failure of the resolution process, the corporate debtor is to proceed into liquidation. The resolution professional may be appointed as liquidator where he has given written consent, the committee of creditors has recommended his appointment, and no disqualifying material exists. The liquidation order should then be accompanied by the usual process directions, including public announcement, claims handling, vesting of powers in the liquidator, and compliance with the liquidation regulations.

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Issues: (i) Whether the corporate debtor was liable to be liquidated under section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 on account of expiry of the CIRP period without receipt of any resolution plan. (ii) Whether the resolution professional could be appointed as liquidator and the ancillary liquidation directions could be issued.

Issue (i): Whether the corporate debtor was liable to be liquidated under section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 on account of expiry of the CIRP period without receipt of any resolution plan.

Analysis: The CIRP had expired and no resolution plan had been received within the prescribed period. The committee of creditors had also resolved, with full vote share, to proceed with liquidation after the failure of the resolution process. In such circumstances, the statutory condition for liquidation under section 33(1)(a) stood satisfied.

Conclusion: The corporate debtor was directed to be liquidated.

Issue (ii): Whether the resolution professional could be appointed as liquidator and the ancillary liquidation directions could be issued.

Analysis: The resolution professional had given written consent to act as liquidator, the committee of creditors had recommended his appointment, and no adverse material was found against him. The liquidation framework also required issuance of public announcement, vesting of powers in the liquidator, and compliance with the liquidation process regulations. Directions were therefore warranted for orderly conduct of liquidation, including claims publication and compliance obligations.

Conclusion: The resolution professional was appointed as liquidator and the connected liquidation directions were issued.

Final Conclusion: The application succeeded and the corporate debtor entered liquidation with the nominated resolution professional continuing as liquidator under the statutory liquidation regime.

Ratio Decidendi: Once the CIRP period expires without receipt of a resolution plan, liquidation follows as a statutory consequence, and the adjudicating authority may appoint the resolution professional as liquidator upon receipt of consent and in the absence of disqualifying material.

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