Liquidation under insolvency law confirmed, with a direction to first explore sale of the corporate debtor as a going concern.

Failure of the CIRP to produce a viable resolution plan, together with the Committee of Creditors' approval for liquidation, satisfied the statutory conditions for liquidation under the Insolvency and Bankruptcy Code, 2016. The corporate debtor was therefore directed into liquidation under Section 33. The order also recorded the recommendation under Regulation 39C of the CIRP Regulations and required the liquidator to first explore sale of the corporate debtor as a going concern before moving to other modes of liquidation.

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Issues: Whether, in the absence of a viable resolution plan and upon approval of liquidation by the Committee of Creditors, the Corporate Debtor was liable to be placed in liquidation and whether the liquidation should proceed with an initial attempt to sell the Corporate Debtor as a going concern.

Analysis: The application was made under Section 33 of the Insolvency and Bankruptcy Code, 2016 after the CIRP had failed to yield any workable resolution plan within the stipulated period. The Committee of Creditors had resolved to liquidate the Corporate Debtor, and the statutory preconditions for liquidation under Section 33 were satisfied. The order also noted the recommendation under Regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 for sale as a going concern, and accordingly directed that the liquidator first explore such sale before resorting to the remaining modes of liquidation.

Conclusion: Liquidation was ordered, with directions to attempt sale of the Corporate Debtor as a going concern in the liquidation process.

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