Liquidation under Insolvency law approved where no resolution plan emerged and creditors unanimously chose winding up.

Where no resolution plan had emerged in the corporate insolvency resolution process and the committee of creditors unanimously resolved to liquidate the corporate debtor in exercise of commercial wisdom, the statutory requirements for liquidation under the Insolvency and Bankruptcy Code, 2016 were satisfied. The Tribunal also noted that the proposed liquidator had given consent and the requisite authorization for assignment. Liquidation was ordered, the resolution professional was appointed as liquidator, and consequential directions were issued for publication, employee discharge, cessation of the existing moratorium, commencement of the liquidation moratorium, transaction investigation, and notice to statutory authorities.

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Issues: Whether the corporate debtor should be directed into liquidation on the basis of the committee of creditors' unanimous resolution, and whether the resolution professional should be appointed as liquidator.

Analysis: The application sought liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 after the corporate insolvency resolution process had been initiated and the committee of creditors had been constituted. The record showed that no resolution plan had emerged, the corporate debtor was not carrying on business, and the committee of creditors had unanimously resolved to liquidate the corporate debtor in exercise of its commercial wisdom. The proposed liquidator had also furnished consent and the required authorization for assignment. In these circumstances, the statutory requirements for liquidation were satisfied, and the Tribunal also issued consequential directions regarding publication of liquidation, discharge of employees, cessation of the existing moratorium, commencement of moratorium under the liquidation regime, investigation of transactions, and intimation to statutory authorities.

Conclusion: Liquidation of the corporate debtor was ordered and the resolution professional was appointed as liquidator.

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