Corporate Debtor Faces Liquidation After Failed Resolution Attempts

The Corporate Debtor was ordered for liquidation under Section 33 of the Insolvency and Bankruptcy Code after multiple failed attempts at resolution. The Committee of Creditors (CoC) unanimously decided on liquidation as no viable resolution plan was received. The Adjudicating Authority appointed the Resolution Professional (RP) as the Liquidator, directing compliance with the IBC provisions, including reporting obligations and public announcements. The decision to liquidate was in line with statutory requirements and supported by the CoC's resolution, marking the end of the moratorium for the Corporate Debtor.

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Issues:
Liquidation of Corporate Debtor under Section 33 of the Insolvency and Bankruptcy Code.

Analysis:
The judgment involves an application filed under Section 33(1)(a) read with 33(2) of the Insolvency and Bankruptcy Code seeking the liquidation of the Corporate Debtor Company. The Adjudicating Authority had initiated the Corporate Insolvency Resolution Process (CIRP) based on a petition by a Financial Creditor and appointed an Interim Resolution Professional (IRP) who was subsequently confirmed as the Resolution Professional (RP) in a CoC meeting. The RP faced non-cooperation from the respondents regarding providing information about the Corporate Debtor's properties, leading to the filing of an application under Section 19(2) of the IBC, which was allowed by the Adjudicating Authority.

In subsequent CoC meetings, valuers were appointed for different assets, and efforts were made to invite Expression of Interest (EOI) from prospective resolution applicants. Despite extensions granted, no EOI was received. The CoC discussed settlement requests from suspended directors, which ultimately failed. A forensic audit was conducted, and two EOIs were received but no resolution plans were submitted by the applicants.

After multiple extensions and failed attempts at resolution, the CoC unanimously resolved to liquidate the Corporate Debtor as no resolution plan was received for revival. The Adjudicating Authority, in accordance with Section 33 of the IBC, ordered the liquidation of the Corporate Debtor, appointing the RP as the Liquidator. The Liquidator was directed to follow the provisions of the IBC, send intimation to the Registrar of Companies, and publish a public announcement about the liquidation. Progress reports were to be filed every three months.

The Tribunal emphasized the statutory requirement for liquidation upon the failure of the resolution process, as mandated by the IBC. The decision to liquidate was supported by the CoC's unanimous resolution and the RP's compliance with the Code's provisions. The Adjudicating Authority's order directed the commencement of liquidation, ending the moratorium for the Corporate Debtor, and appointed the RP as the Liquidator, ensuring compliance with the IBC's procedures and reporting requirements.

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