Liquidation after failed CIRP and no resolution plan permits appointment of another eligible liquidator when the resolution professional declines.

Where the CIRP period had expired, no resolution plan was received, and the committee of creditors approved liquidation unanimously, liquidation followed as the only available course under the Insolvency and Bankruptcy Code. Since the resolution professional declined to act as liquidator, the tribunal could appoint another eligible insolvency professional under the liquidation framework, subject to a valid authorisation for assignment. The accompanying directions on handover of records, cessation of the board's powers, public notice, conduct of liquidation, and restriction on proceedings were issued in terms of the Code and liquidation regulations.

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Issues: Whether the application for liquidation of the corporate debtor could be allowed on expiry of the corporate insolvency resolution process without any resolution plan having been received, and whether a liquidator could be appointed in place of the resolution professional who declined to act as liquidator.

Analysis: The corporate insolvency resolution process had expired, no resolution plan had been received, and the committee of creditors had approved liquidation with 100% voting share. In these circumstances, liquidation under section 33(2) of the Insolvency and Bankruptcy Code, 2016 followed as the only course available. Since the resolution professional expressed unwillingness to act as liquidator, appointment of another eligible insolvency professional under section 34(4)(c) was warranted, subject to the requirement of a valid authorisation for assignment. The consequential directions regarding handover of records, cessation of the powers of the board, conduct of liquidation, public notice, and restrictions on proceedings were issued in terms of the Code and the applicable liquidation regulations.

Conclusion: The application for liquidation was allowed and the corporate debtor was ordered to be liquidated. A liquidator was appointed in place of the resolution professional, with the connected statutory directions.

Final Conclusion: The corporate debtor entered liquidation under the Insolvency and Bankruptcy Code, 2016, and the insolvency professional appointed by the tribunal was directed to administer the liquidation process.

Ratio Decidendi: Where the CIRP period has expired, no resolution plan has been received, and the committee of creditors has approved liquidation, the adjudicating authority is bound to order liquidation and may appoint another eligible liquidator if the resolution professional declines to act.

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