Commercial wisdom in insolvency led to liquidation where revival was impracticable and no meaningful assets remained.

Where the Committee of Creditors, exercising commercial wisdom, concluded that the corporate debtor had no scope for revival or business continuity, the adjudicating authority ordered liquidation. The record showed that the debtor had no operative business or meaningful assets and that there was no opposition to the request for liquidation. The interim resolution professional had also given consent to act as liquidator, so the liquidation application was allowed and the insolvency process was directed to proceed under the appointed liquidator.

---

---

Issues: Whether the corporate debtor should be ordered into liquidation and the interim resolution professional appointed as liquidator.

Analysis: The Committee of Creditors unanimously resolved that the corporate debtor had no scope for revival or business continuity and requested liquidation. The record also showed that the corporate debtor had no operative business and no meaningful assets, and there was no opposition to the request. On that basis, the order for liquidation was passed under the statutory scheme governing liquidation after commencement of CIRP. The applicant had also furnished consent to act as liquidator.

Conclusion: The application for liquidation was allowed and the interim resolution professional was appointed as liquidator.

Final Conclusion: The corporate debtor was directed into liquidation and the liquidation process was to proceed under the insolvency framework with the appointed liquidator.

Ratio Decidendi: Where the Committee of Creditors, in exercise of its commercial wisdom, concludes that a corporate debtor is incapable of revival and requests liquidation, the adjudicating authority may order liquidation and appoint the proposed liquidator in accordance with the Insolvency and Bankruptcy Code, 2016.

---