CoC Can Direct Liquidation Of Corporate Debtor Any Time Before Confirmation Of Resolution Plan U/S 33(2) Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that the Committee of Creditors (CoC) can direct the liquidation of a corporate debtor at any time before the confirmation of a resolution plan under Section 33(2) of the Insolvency and Bankruptcy Code (IBC). The case involved a corporate debtor whose resolution plan was under consideration. The NCLAT found that the CoC has the authority to decide on liquidation if it believes that the resolution plan is not viable or feasible. This ruling clarifies the powers of the CoC in the insolvency resolution process, ensuring that creditors can make informed decisions about the future of the debtor.