Liquidation after failed resolution plan: valid creditor approval can trigger liquidation and appointment of the proposed liquidator.

After completion of the corporate insolvency resolution process without any approved resolution plan, the adjudicating authority may order liquidation where the Committee of Creditors has validly resolved to liquidate the corporate debtor and appoint the proposed resolution professional as liquidator. The Tribunal noted repeated invitations for expression of interest, compliance with insolvency requirements, and the proposed liquidator's written consent, and then directed liquidation under the Code and the Liquidation Process Regulations. The existing moratorium ceased on commencement of liquidation, and the proposed resolution professional was appointed as liquidator of the corporate debtor.

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Issues: Whether the corporate debtor should be ordered into liquidation and a liquidator appointed on the basis of the Committee of Creditors' approved resolution.

Analysis: The application was founded on the completion of the corporate insolvency resolution process, the absence of any resolution plan despite repeated invitations for expression of interest, and the Committee of Creditors' resolution approving liquidation with the proposed appointment of the resolution professional as liquidator. The Tribunal also noted compliance with the insolvency process requirements and the written consent of the proposed liquidator. On that basis, the Tribunal proceeded to pass the liquidation directions, including cessation of the existing moratorium and commencement of liquidation in accordance with the Code and the Liquidation Process Regulations.

Conclusion: The request for liquidation was allowed and the proposed resolution professional was appointed as liquidator of the corporate debtor.

Ratio Decidendi: Where the Committee of Creditors has validly approved liquidation after failure to receive a resolution plan, the adjudicating authority may order liquidation and appoint the proposed liquidator in accordance with the Insolvency and Bankruptcy Code, 2016.

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