Commercial wisdom in insolvency supports liquidation when CIRP yields no viable resolution plan and statutory conditions are met.

The Committee of Creditors, acting on commercial wisdom and with unanimous voting support, resolved to proceed with liquidation after repeated extensions failed to produce any viable resolution plan during the CIRP. The Tribunal recorded expiry of the CIRP period, the absence of approved plans from prospective applicants, and compliance with the Insolvency and Bankruptcy Code requirements, including the proposed Resolution Professional's consent and disclosure. It therefore directed liquidation of the corporate debtor and appointed the Resolution Professional as liquidator under the Code.

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Issues: Whether the Corporate Debtor should be put into liquidation and the Resolution Professional appointed as Liquidator.

Analysis: The Committee of Creditors had, with 100% voting share, resolved to seek liquidation after repeated opportunities for submission of a resolution plan did not result in any viable plan. The Tribunal noted the expiry of the CIRP period, the failure of prospective resolution applicants to submit plans despite extensions, and the CoC's express approval to move for liquidation. In view of the statutory framework governing liquidation under the Insolvency and Bankruptcy Code, 2016, the Tribunal found that the prerequisites for commencement of liquidation were satisfied and that the proposed Resolution Professional had given consent and disclosed the absence of disciplinary proceedings.

Conclusion: The application was allowed. The Corporate Debtor was directed to be liquidated, and the Resolution Professional was appointed as the Liquidator under Section 34(1) of the Insolvency and Bankruptcy Code, 2016.

Ratio Decidendi: Where the Committee of Creditors, exercising its commercial wisdom, resolves to liquidate the Corporate Debtor after the CIRP fails to yield an approved resolution plan, the Adjudicating Authority may order liquidation and appoint the proposed liquidator in accordance with the Code.

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