Liquidation under insolvency law follows CoC commercial wisdom when no compliant resolution plan emerges within CIRP time.

Liquidation of the corporate debtor was ordered under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 after the Committee of Creditors resolved to liquidate and no compliant resolution plan was received within the CIRP period. The Tribunal noted that an information memorandum and invitation for expression of interest had been published, but no viable plan emerged, and the CoC, in exercise of its commercial wisdom, reiterated liquidation even after considering extension. It also recorded the absence of opposition from the promoters or directors and issued consequential directions for appointment of the resolution professional as liquidator, cessation of moratorium, transaction investigation, and statutory intimation.

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Issues: Whether liquidation of the corporate debtor was to be ordered on the basis of the Committee of Creditors' resolution and the failure to receive a compliant resolution plan within the CIRP period.

Analysis: The application was founded on Section 33(2) of the Insolvency and Bankruptcy Code, 2016 after the Committee of Creditors resolved that the corporate debtor should be liquidated. The record showed that despite publication of the information memorandum and expression of interest, no compliant resolution plan was received within time. The CoC had considered the request for extension, but in exercise of its commercial wisdom it reiterated the decision to liquidate. The Tribunal also noted the absence of opposition from the promoters or directors and recorded the proposed ancillary directions regarding appointment of the liquidator, cessation of moratorium, investigation of transactions, and statutory intimation obligations.

Conclusion: Liquidation was ordered. The resolution professional was appointed as liquidator and the consequential directions necessary for the liquidation process were issued.

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