Liquidation under the Insolvency Code followed failure to secure any resolution plan during the extended CIRP period.

Liquidation of the corporate debtor was ordered under the Insolvency and Bankruptcy Code after the extended CIRP produced no resolution plan or prospective investor. The tribunal relied on repeated public announcements, invitations for expression of interest, and the absence of any viable business activity, along with non-cooperation by the erstwhile board, to conclude that the statutory conditions for liquidation were satisfied. Consequential directions were issued on moratorium, employee discharge, transaction investigation, and intimation to authorities, and a liquidator was appointed to conduct the process.

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Issues: Whether liquidation of the corporate debtor was warranted under the Insolvency and Bankruptcy Code, 2016 when no resolution plan or prospective investor emerged during the extended CIRP period.

Analysis: The Resolution Professional showed that public announcements and invitations for expression of interest were made, the CIRP period was extended, and despite repeated opportunities no resolution plan was received. The record also indicated non-cooperation by the erstwhile board and the absence of any business activity capable of supporting resolution as a going concern. In these circumstances, the statutory conditions for seeking liquidation were satisfied and the tribunal also directed consequential steps relating to moratorium, discharge of employees, investigation of transactions, and communication to authorities.

Conclusion: Liquidation of the corporate debtor was ordered and the application seeking liquidation was allowed.

Final Conclusion: The corporate debtor entered liquidation, with a liquidator appointed to carry out the process and the pending connected applications closed as having no merit in view of the liquidation order.

Ratio Decidendi: Where the extended CIRP yields no resolution plan and the committee of creditors resolves to liquidate, the adjudicating authority may order liquidation and give effect to the statutory consequences under the Code.

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