CIRP expiry and functus officio of CoC justify liquidation when no duly approved resolution plan exists.

Where the CIRP expired without any resolution plan being duly approved by the committee of creditors, a later email from one financial creditor could not amount to valid CoC approval because the modified plan was not resubmitted, examined, certified, or put to a lawful vote under the Code and regulations. Once the CIRP period had lapsed, the CoC became functus officio, and the withdrawal of interest by the sole resolution applicant left no basis for further extension of time. In that situation, the adjudicating authority was entitled to proceed under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 and direct liquidation.

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Issues: Whether the order directing liquidation of the corporate debtor was liable to be set aside on the ground that no approved resolution plan existed and that the committee of creditors could still act on a later acceptance conveyed by one financial creditor.

Analysis: The CIRP had expired without any resolution plan being approved by the committee of creditors within the statutory period. The later email from one financial creditor did not amount to approval by the committee of creditors, since the modified plan was never resubmitted, examined, certified, or put to a valid vote in accordance with the Code and the regulations. Once the CIRP period had lapsed, the committee of creditors had become functus officio, and the withdrawal of interest by the sole resolution applicant meant that no surviving basis remained for seeking further extension of CIRP time. In these circumstances, the adjudicating authority was justified in proceeding under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016.

Conclusion: The challenge to the liquidation order failed. The liquidation direction was upheld, and the appeal was dismissed.

Ratio Decidendi: In the absence of a duly approved resolution plan within the CIRP period, a later bilateral indication from a creditor does not amount to CoC approval, and upon expiry of the CIRP the adjudicating authority may order liquidation under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016.

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