Liquidation under insolvency law: CoC resolution and absence of a resolution plan led to appointment of the Liquidator.

Where the Committee of Creditors resolved to liquidate the corporate debtor and no resolution plan was forthcoming, liquidation was ordered and the approved Resolution Professional was appointed as Liquidator. The order reflected satisfaction of the statutory prerequisites for liquidation under the insolvency framework. Once liquidation commenced, the moratorium ceased to operate, and the powers of the board of directors and key managerial personnel vested in the Liquidator. The Liquidator was authorised to administer the liquidation process, coordinate with authorities, recover dues and receivables, and act subject to the Code's restrictions on proceedings after liquidation.

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Issues: (i) Whether liquidation of the corporate debtor could be ordered on the basis of the Committee of Creditors' resolution and the absence of a resolution plan, and whether the Resolution Professional could be appointed as Liquidator. (ii) What are the legal consequences flowing from the liquidation order, including cessation of moratorium and vesting of powers in the Liquidator.

Issue (i): Whether liquidation of the corporate debtor could be ordered on the basis of the Committee of Creditors' resolution and the absence of a resolution plan, and whether the Resolution Professional could be appointed as Liquidator.

Analysis: The application was supported by the fact that no resolution plan had been received and the Committee of Creditors had resolved to initiate liquidation. The record also showed that the Committee had approved liquidation-related costs and had approved the name of the Resolution Professional to act as Liquidator. In these circumstances, the statutory requirements for ordering liquidation were treated as satisfied, and the proposed Resolution Professional was found fit to be appointed as Liquidator.

Conclusion: The liquidation request was allowed and the Resolution Professional was appointed as Liquidator.

Issue (ii): What are the legal consequences flowing from the liquidation order, including cessation of moratorium and vesting of powers in the Liquidator.

Analysis: Once liquidation was ordered, the moratorium ceased to operate. The powers of the board of directors and key managerial persons ceased and vested in the Liquidator. The order also recognized the Liquidator's authority to proceed with liquidation in accordance with the Code, to coordinate with authorities, to recover receivables and other dues, and to take steps consistent with the restrictions on institution of proceedings after liquidation.

Conclusion: The liquidation order brought the moratorium to an end and transferred control of the corporate debtor's affairs to the Liquidator, subject to the Code.

Final Conclusion: The application succeeded in full, resulting in liquidation of the corporate debtor and consequential statutory effects under the insolvency framework.

Ratio Decidendi: Where the Committee of Creditors resolves to liquidate the corporate debtor and no resolution plan is forthcoming, the adjudicating authority may order liquidation and appoint the approved Resolution Professional as Liquidator, with the statutory consequences that follow under the Code.

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