Liquidation under insolvency law was justified where prolonged CIRP and non-cooperation blocked access to assets and records.

Liquidation under the Insolvency and Bankruptcy Code was warranted where the corporate insolvency resolution process had run beyond the prescribed period and was stymied by persistent non-cooperation from the suspended management. The Resolution Professional could not obtain custody of the debtor's assets or records, and the Committee of Creditors found no viable progress in resolution. On that basis, the statutory conditions for liquidation under Section 33(1) were treated as satisfied, the CoC approved liquidation with full voting support, and the Resolution Professional's consent enabled appointment as liquidator. Liquidation of the corporate debtor was ordered.

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Issues: Whether the corporate debtor was liable to be placed in liquidation under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 on account of expiry of the CIRP period and continued non-cooperation by the corporate debtor and its former management.

Analysis: The CIRP had run far beyond the prescribed period and the Resolution Professional had been unable to obtain custody of the corporate debtor's assets, records, and cooperation from the suspended management. The Committee of Creditors considered the conduct of the corporate debtor and its directors, the absence of books of account and control over assets, the lack of viable progress in resolution, and approved liquidation with 100% voting. In these circumstances, the statutory conditions for liquidation under Section 33(1) were treated as satisfied and the Resolution Professional's consent enabled appointment as liquidator.

Conclusion: Liquidation of the corporate debtor was ordered, and the application for liquidation was allowed.

Ratio Decidendi: Where the CIRP cannot be effectively completed within the permitted period and the resolution process is stymied by persistent non-cooperation and lack of access to the debtor's assets and records, liquidation under Section 33(1) of the Code is warranted.

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