Statutory liquidation follows when CIRP ends without a resolution plan, with the resolution professional appointed as liquidator.

Expiry of the corporate insolvency resolution process without approval or receipt of a resolution plan triggers liquidation as a statutory consequence under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. Where the committee of creditors has approved liquidation and the resolution professional consents to act as liquidator, the Adjudicating Authority is required to order liquidation and appoint the liquidator for conduct of the process under the applicable liquidation framework and regulations.

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Issues: Whether liquidation of the corporate debtor was warranted on expiry of the corporate insolvency resolution process without approval or receipt of a resolution plan, and whether a liquidator could be appointed for conducting the liquidation process.

Analysis: Upon expiry of the insolvency resolution period, no resolution plan had emerged, and the committee of creditors had approved liquidation. In such circumstances, Section 33(1) of the Insolvency and Bankruptcy Code, 2016 required the Adjudicating Authority to pass an order for liquidation. The resolution professional had also given consent to act as liquidator under the Code, and the liquidation process was directed to proceed in accordance with the statutory framework and regulations governing liquidation.

Conclusion: Liquidation was directed and the resolution professional was appointed as liquidator.

Ratio Decidendi: Where the corporate insolvency resolution process expires without a resolution plan, liquidation follows as a statutory consequence under Section 33(1) of the Insolvency and Bankruptcy Code, 2016.

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