Liquidation under insolvency law follows failed resolution and creditor approval for winding up the corporate debtor.

Where no compliant resolution plan was approved in the corporate insolvency process, the committee of creditors unanimously authorised liquidation and approved the resolution professional's appointment as liquidator. On those facts, the statutory preconditions for liquidation under the Insolvency and Bankruptcy Code, 2016 were satisfied, and liquidation of the corporate debtor was ordered. The insolvency resolution process was brought to an end, the moratorium ceased to operate, and the liquidation process was directed to proceed under the Code and applicable liquidation regulations.

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Issues: Whether the corporate debtor should be sent into liquidation under Section 33 of the Insolvency and Bankruptcy Code, 2016 and whether a liquidator should be appointed.

Analysis: The resolution process had failed to yield an approved resolution plan. The committee of creditors, with full voting support, resolved to initiate liquidation and approved the resolution professional's appointment as liquidator. In these circumstances, the statutory preconditions for liquidation stood satisfied.

Conclusion: Liquidation of the corporate debtor was ordered and the resolution professional was appointed as liquidator.

Final Conclusion: The insolvency resolution process was brought to an end by directing liquidation under the Code, with consequential directions regarding cessation of moratorium and conduct of the liquidation process.

Ratio Decidendi: Where no compliant resolution plan is approved and the committee of creditors authorises liquidation, the adjudicating authority may order liquidation under Section 33 of the Insolvency and Bankruptcy Code, 2016 and appoint a liquidator in accordance with the Code and the liquidation regulations.

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