Liquidation under Insolvency Code follows creditor approval and unviable business operations, with liquidation moratorium and reporting duties triggered.

Liquidation may be ordered under Section 33(2) of the Insolvency and Bankruptcy Code where the committee of creditors approves liquidation with the requisite voting share and the resolution professional moves the application. Here, the committee approved liquidation above the statutory threshold, and the record showed that the corporate debtor had no available assets or plant and machinery and that its business had been closed for a substantial period, making continuation of the resolution process unfeasible. The liquidation conditions were treated as satisfied, and consequential directions followed for appointment of the proposed liquidator, publication of the liquidation announcement, intimation to regulatory authorities, cessation of the earlier moratorium, commencement of liquidation moratorium, and filing of the preliminary report.

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Issues: Whether, on the committee of creditors approving liquidation with the requisite voting share and the resolution professional moving the application, the corporate debtor should be ordered into liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.

Analysis: The application was supported by the resolution professional's report that the committee of creditors had resolved, by more than the statutory threshold, to liquidate the corporate debtor. The record also reflected that the corporate debtor had no available assets or plant and machinery and that its business had remained closed for a substantial period, making continuation of the corporate insolvency resolution process unfeasible. In these circumstances, the statutory conditions for liquidation under Section 33(2) stood satisfied. Consequential directions were issued for appointment of the proposed liquidator, publication of the liquidation announcement, intimation to the Registrar of Companies and tax authorities, cessation of the earlier moratorium, commencement of moratorium under liquidation, and filing of the preliminary report in terms of the liquidation regulations.

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

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