CoC Abstention from Voting on Resolution Plan Leads to Liquidation: NCLAT Upholds NCLT’s Decision

The NCLAT (National Company Law Appellate Tribunal) upheld the NCLT's (National Company Law Tribunal) decision leading to liquidation, based on the Committee of Creditors' (CoC) abstention from voting on the resolution plan. The tribunal reasoned that the CoC's failure to approve any resolution plan, indicated by their abstention, effectively led to the non-viability of the corporate debtor's revival. This ruling underscores the critical role of the CoC's active participation and voting in the corporate insolvency resolution process, failing which liquidation becomes the default outcome under the IBC.