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Issues: (i) Whether the resolution applicant was entitled to a direction for revaluation of the corporate debtor, and (ii) whether the corporate debtor was liable to be liquidated on the CoC's decision after failure of resolution.
Issue (i): Whether the resolution applicant was entitled to a direction for revaluation of the corporate debtor
Analysis: Valuation under the CIRP framework is undertaken to determine fair value and liquidation value for the benefit of the Committee of Creditors while considering a resolution plan. The resolution applicant had repeatedly revised its offer, but the Code does not contemplate revaluation merely to enable a further revision of the applicant's commercial proposal. In the absence of any statutory basis for revaluation, and given the CoC's repeated consideration of the plans already submitted, no direction for revaluation could be issued.
Conclusion: The request for revaluation was rejected and the prayer was dismissed.
Issue (ii): Whether the corporate debtor was liable to be liquidated on the CoC's decision after failure of resolution
Analysis: The CIRP had continued far beyond the statutory time frame, yet no resolution plan acceptable to the CoC had emerged. The CoC had resolved by the requisite voting share to liquidate the corporate debtor. In these circumstances, the statutory scheme under Section 33(2) required liquidation, particularly where resolution within a time-bound process had failed and the liquidation route had been approved by the CoC.
Conclusion: Liquidation of the corporate debtor was ordered and the resolution professional was appointed as liquidator subject to the statutory conditions.
Final Conclusion: The application seeking revaluation failed, while the liquidation application succeeded, resulting in liquidation of the corporate debtor under the Insolvency and Bankruptcy Code.
Ratio Decidendi: Revaluation of a corporate debtor cannot be ordered merely to facilitate a revised offer by a resolution applicant, and once the Committee of Creditors validly resolves to liquidate after failure of resolution within the CIRP timeline, the Adjudicating Authority may order liquidation under Section 33(2) of the Code.
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