CoC Entitled To Liquidate Corporate Debtor If No Approved Resolution Plan Is Placed Before Adjudicating Authority Within Statutory CIRP Period: NCLAT

NCLAT ruled that the Committee of Creditors (CoC) can decide to liquidate a corporate debtor if no approved resolution plan is placed before the adjudicating authority within the statutory CIRP period. The tribunal emphasized that the CoC’s decision to liquidate is a commercial decision and is not subject to judicial review unless it violates the provisions of the Insolvency and Bankruptcy Code (IBC). This ruling reinforces the CoC’s authority in the insolvency resolution process and underscores the importance of timely submission of resolution plans. The decision aims to streamline the insolvency process and ensure that corporate debtors are either resolved or liquidated within the stipulated timeframe.