Liquidation on CoC resolution after failed resolution plans under the Insolvency and Bankruptcy Code.

The NCLT considered a CoC resolution under the Insolvency and Bankruptcy Code, 2016, following evaluation of resolution plans in CIRP. As the plans were found not feasible or viable, the CoC resolved to seek liquidation under Section 33(2), and the Adjudicating Authority accepted the application. Liquidation of the corporate debtor was ordered, the existing resolution professional was appointed liquidator, and consequential directions were issued on moratorium, employee discharge, liquidation conduct, investigation of financial affairs, pending applications, and the preliminary report.

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Issues: Whether, on the basis of the Committee of Creditors' decision and the resolution professional's application, the corporate debtor was liable to be ordered into liquidation under the Insolvency and Bankruptcy Code, 2016.

Analysis: The application was founded on the CoC's resolution under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 after consideration of the resolution plans received in the CIRP. The record showed that the plans were found not feasible or viable and the CoC resolved to move for liquidation. The Adjudicating Authority accepted the application and directed liquidation, also appointing the existing resolution professional as liquidator and issuing consequential directions regarding moratorium, discharge of employees, conduct of liquidation, investigation of financial affairs, disposal of pending applications, and filing of the preliminary report.

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

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