Liquidation on creditor approval: absence of any resolution plan led to appointment of the Resolution Professional as Liquidator.

Where the Committee of Creditors approved liquidation with the requisite voting share and no resolution plan was received during the Corporate Insolvency Resolution Process, liquidation was directed under the Insolvency and Bankruptcy Code. The Resolution Professional was also appointed as Liquidator, subject to holding a valid Authorisation for Assignment under the applicable IP regulations. The document further records that liquidation proceedings would commence under Chapter III of the Code, with the Liquidator assuming control and carrying out the statutory process.

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Issues: (i) Whether the corporate debtor was liable to be put into liquidation on the recommendation of the Committee of Creditors in the absence of any resolution plan. (ii) Whether the Resolution Professional could be appointed as Liquidator subject to statutory compliance.

Issue (i): Whether the corporate debtor was liable to be put into liquidation on the recommendation of the Committee of Creditors in the absence of any resolution plan.

Analysis: The record showed that the Corporate Insolvency Resolution Process had been initiated, public announcement was made, the Committee of Creditors was duly constituted, and despite repeated invitation of expressions of interest and extension of time, no resolution plan was received. The Committee of Creditors resolved with 100% voting share to liquidate the corporate debtor. Under section 33(2) of the Insolvency and Bankruptcy Code, 2016, once the resolution professional intimates the Adjudicating Authority of a decision of the Committee of Creditors approved by the requisite voting share to liquidate the corporate debtor, liquidation follows.

Conclusion: The corporate debtor was ordered to be liquidated in favour of the applicant's prayer.

Issue (ii): Whether the Resolution Professional could be appointed as Liquidator subject to statutory compliance.

Analysis: The Resolution Professional consented to act as Liquidator. The appointment was made under section 34(1) of the Insolvency and Bankruptcy Code, 2016, subject to possession of a valid Authorisation for Assignment under regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2019. Consequential directions were issued for commencement of liquidation under Chapter III of the Code and for the statutory consequences flowing from liquidation.

Conclusion: The Resolution Professional was appointed as Liquidator subject to the statutory conditions.

Final Conclusion: Liquidation of the corporate debtor was authorised, and the liquidation regime under the Code was set in motion with the Liquidator assuming control and carrying out the statutory process.

Ratio Decidendi: Where the Committee of Creditors approves liquidation by the requisite voting share and no resolution plan is pending for confirmation, the Adjudicating Authority must order liquidation and appoint a liquidator in accordance with the Code.

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