Corporate debtor liquidation ordered under section 33 IBC with unanimous creditor approval and liquidator appointment

The NCLT Mumbai ordered liquidation of a corporate debtor under section 33 of the Insolvency and Bankruptcy Code 2016. The Committee of Creditors unanimously passed a resolution for liquidation with 100% voting share. The tribunal noted that mortgaged property and associated debt were intricately linked and could not be segregated during liquidation proceedings. The Resolution Professional was appointed as Liquidator to proceed with asset liquidation, with valuation report already on record. The application was disposed of with authorization for the Liquidator to take necessary steps for asset liquidation.

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Issues:
1. Application under section 33 of the Insolvency and Bankruptcy Code 2016.
2. Appointment of Interim Resolution Professional and advertisement for inviting claims from creditors.
3. Admission of claim by Financial Creditor and constitution of Committee of Creditors.
4. Lack of cooperation from Directors of the Corporate Debtor and appointment of accountant for financial statements.
5. Presentation of financial statements and valuation reports to the Committee of Creditors.
6. Decision by the Committee of Creditors to liquidate the Corporate Debtor.
7. Prayer for passing an Order of Liquidation and appointment of Liquidator.
8. Intimation of Committee of Creditors' decision for liquidation to the Adjudicating Authority.
9. Authorization for the Liquidator to take necessary steps for liquidation.
10. Clarification on the distinction between Resolution Process and Liquidation Process.
11. Appointment of Resolution Professional as Liquidator for proceeding with the Liquidation Process.

Analysis:
1. The judgment pertains to an application under section 33 of the Insolvency and Bankruptcy Code 2016, where the Resolution Professional appointed in the Insolvency Resolution Process of a Corporate Debtor sought liquidation.
2. The Company Petition filed by a Financial Creditor was transferred to the National Company Law Tribunal, Mumbai, leading to the appointment of an Interim Resolution Professional who invited claims from creditors through newspaper advertisements.
3. The claim by the Financial Creditor was admitted, and a Committee of Creditors was constituted, with the Petitioner Financial Creditor being a member.
4. The Directors of the Corporate Debtor did not cooperate, necessitating the appointment of an accountant for preparing financial statements.
5. Financial statements and valuation reports were presented to the Committee of Creditors, leading to a decision to liquidate the Corporate Debtor due to the absence of any Resolution Plan.
6. The Resolution Professional sought an Order of Liquidation and appointment as Liquidator, which was confirmed by the Committee of Creditors.
7. The Committee's decision for liquidation was communicated to the Adjudicating Authority, leading to the authorization for the Liquidator to initiate necessary steps for liquidation.
8. The distinction between the Resolution Process and Liquidation Process was clarified, emphasizing the commencement of Liquidation proceedings.
9. The Resolution Professional was appointed as the Liquidator to proceed with the Liquidation Process as directed by the Tribunal, concluding the matter.

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