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Issues: (i) Whether the corporate debtor was liable to be ordered into liquidation under the Insolvency and Bankruptcy Code, 2016. (ii) Whether the Resolution Professional could be appointed as Liquidator, subject to the statutory requirements.
Issue (i): Whether the corporate debtor was liable to be ordered into liquidation under the Insolvency and Bankruptcy Code, 2016.
Analysis: The application for liquidation was founded on the position that no resolution plan had been received within the CIRP period and the Committee of Creditors had approved liquidation by the requisite voting share. In these circumstances, the statutory basis for liquidation under section 33(2) of the Insolvency and Bankruptcy Code, 2016 was satisfied.
Conclusion: The corporate debtor was ordered to be liquidated.
Issue (ii): Whether the Resolution Professional could be appointed as Liquidator, subject to the statutory requirements.
Analysis: The Resolution Professional expressed willingness to act as Liquidator. The appointment was made under section 34(1) of the Insolvency and Bankruptcy Code, 2016 and was made conditional upon possession of a valid Authorisation for Assignment as required by regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2019. Consequential directions followed regarding commencement of liquidation, cessation of board powers, cooperation by personnel, filing with the Registrar of Companies, and the legal effect of liquidation under the Code.
Conclusion: The Resolution Professional was appointed as Liquidator subject to the statutory condition of valid Authorisation for Assignment.
Final Conclusion: The liquidation process was directed to commence and the corporate debtor's management stood displaced in favour of the Liquidator, with all consequential statutory directions under the Code coming into effect.
Ratio Decidendi: Where no resolution plan is received and the Committee of Creditors approves liquidation, the Adjudicating Authority may order liquidation under section 33(2) of the Insolvency and Bankruptcy Code, 2016 and appoint the Resolution Professional as Liquidator under section 34(1), subject to statutory eligibility requirements.
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