Liquidation proceedings: delay condoned and corporate debtor directed into liquidation when no resolution plan emerged.

Delay in filing the liquidation application was condoned because it was explained by pandemic-related disruption, partial lockdown conditions, and the exclusion of lockdown periods under the CIRP and liquidation regulations. As no resolution plan or expression of interest had been received during the corporate insolvency process, and the committee of creditors had resolved to proceed with liquidation and appoint the resolution professional as liquidator, the statutory requirements for liquidation were treated as satisfied. The corporate debtor was directed into liquidation and the resolution professional was appointed as liquidator.

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Issues: (i) Whether the delay of 53 days in filing the liquidation application deserved condonation. (ii) Whether liquidation of the corporate debtor was warranted and the resolution professional could be appointed as liquidator.

Issue (i): Whether the delay of 53 days in filing the liquidation application deserved condonation.

Analysis: The delay was explained with reference to the pandemic, the partial lockdown situation, the working conditions of the concerned offices, and the exclusion of lockdown periods contemplated under the CIRP and liquidation regulations.

Conclusion: The delay was condoned.

Issue (ii): Whether liquidation of the corporate debtor was warranted and the resolution professional could be appointed as liquidator.

Analysis: No expression of interest or resolution plan had been received during the corporate insolvency process, and the committee of creditors had resolved to proceed with liquidation and to appoint the resolution professional as liquidator. The statutory requirements for passing a liquidation order were treated as satisfied.

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

Final Conclusion: The application was allowed, the delay was condoned, and the corporate debtor was directed to proceed into liquidation under the Insolvency and Bankruptcy Code, 2016.

Ratio Decidendi: Where no resolution plan emerges and the statutory conditions for liquidation are met, the adjudicating authority may condone the filing delay and pass a liquidation order appointing the resolution professional as liquidator.

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