Liquidation under the IBC requires proper creditor approval and supporting material; unsupported requests were dismissed.

An application for liquidation under section 33(2) of the Insolvency and Bankruptcy Code, 2016 was found unsupported by a proper committee of creditors resolution or sufficient material showing why liquidation was necessary. The record also did not demonstrate compliance with Regulation 39C of the CIRP Regulations, including adequate details on the basis for liquidation and how the committee had applied its mind. On that material, the liquidation request was treated as not maintainable and was dismissed, with liberty to file a fresh application supported by relevant material.

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Issues: Whether the application seeking liquidation of the corporate debtor under section 33(2) of the Insolvency and Bankruptcy Code, 2016 could be allowed when the record did not show a proper resolution of the committee of creditors or supporting material justifying liquidation, and whether Regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 had been complied with.

Analysis: The liquidation request was examined against the requirements of section 33(2) of the Insolvency and Bankruptcy Code, 2016 and Regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The record showed that the request had been made at an early stage of the corporate insolvency resolution process, without adequate material demonstrating the necessity for liquidation. The authority also noted the absence of a proper liquidation resolution with the requisite details, including supporting evidence and the manner in which the committee of creditors had applied its mind to the question of liquidation.

Conclusion: The liquidation application was not maintainable on the material placed and was dismissed, with liberty to file a fresh application supported by relevant material.

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