Liquidation under the Insolvency Code upheld after no resolution plan emerged and creditors unanimously approved liquidation.

No resolution plan was received within the CIRP timeline, and the Committee of Creditors unanimously resolved to liquidate the corporate debtor and continue the existing resolution professional as liquidator. As the resolution professional consented to act as liquidator and the statutory conditions under the Insolvency and Bankruptcy Code were satisfied, the NCLT allowed the liquidation application. It also directed that the moratorium would cease and that the liquidator would exercise powers for liquidation in accordance with the Code and liquidation regulations.

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Issues: Whether the corporate debtor was liable to be ordered into liquidation and the resolution professional appointed as liquidator on the failure to receive any resolution plan.

Analysis: No resolution plan had been received within the CIRP timeline, and the Committee of Creditors had unanimously resolved to liquidate the corporate debtor and to continue the existing resolution professional as liquidator. The application was supported by the resolution professional's consent to act as liquidator. In these circumstances, the statutory conditions for liquidation under the Insolvency and Bankruptcy Code were satisfied, and the Adjudicating Authority found it to allow the application. Consequential directions followed regarding cessation of moratorium, vesting of powers in the liquidator, and conduct of liquidation in accordance with the Code and the liquidation regulations.

Conclusion: The application for liquidation was allowed, and the resolution professional was appointed as liquidator.

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