Committee-approved liquidation under the Insolvency and Bankruptcy Code follows once communicated, with the resolution professional eligible to act as liquidator.

Where the committee of creditors resolves to liquidate a corporate debtor and the resolution professional communicates that decision to the Adjudicating Authority, liquidation is to follow under section 33(2) of the Insolvency and Bankruptcy Code, subject to statutory compliance. The note also records that the resolution professional may be appointed as liquidator under section 34(1) if eligible and consenting. It further highlights liquidation administration directions on claims, liquidation costs, going concern sale, and reporting obligations under the liquidation regulations, and notes exclusion of the lockdown period for CIRP timeline computation.

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Issues: Whether the corporate debtor was liable to be liquidated under section 33(2) of the Insolvency and Bankruptcy Code, 2016, and whether the resolution professional was to be appointed as liquidator with consequential directions for conduct of the liquidation process.

Analysis: The committee of creditors had resolved to liquidate the corporate debtor on the basis that revival was not feasible and the assets were in a deteriorated condition. The application was filed within time after exclusion of the lockdown period for computation of CIRP timelines. On the statutory scheme, once the resolution professional intimates the Adjudicating Authority of the decision of the committee of creditors to liquidate the corporate debtor, liquidation follows under section 33(2). The resolution professional was also found eligible and consented to act as liquidator under section 34(1). The Tribunal further recorded the directions required for liquidation administration, including claims, liquidation costs, going concern sale, and reporting obligations under the liquidation regulations.

Conclusion: The application for liquidation was allowed, the corporate debtor was directed to be liquidated, and the resolution professional was appointed as liquidator with consequential liquidation directions.

Ratio Decidendi: A liquidation decision taken by the committee of creditors, once communicated by the resolution professional and otherwise in conformity with the Code, must be given effect by the Adjudicating Authority, and the resolution professional may be appointed as liquidator subject to statutory compliance.

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