Adjudicating Authority Must Pass Liquidation Order U/S 33(4) Of IBC Upon Breach Of Resolution Plan By Successful Applicant: NCLT Mumbai

The NCLT (National Company Law Tribunal) Mumbai bench has held that the "Adjudicating Authority is mandated to pass a liquidation order under Section 33(4) of IBC upon breach of a resolution plan by a successful resolution applicant." The tribunal clarified that once a resolution plan has been approved but the successful resolution applicant fails to implement its terms, the NCLT has no discretion but to order liquidation of the corporate debtor. This strict interpretation reinforces the sanctity of approved resolution plans and ensures that the insolvency process leads to a definitive outcome when plans are not adhered to.