CoC Is Empowered To Liquidate Corporate Debtor Any Time After It's Constitution Or Before Resolution Plan Is Confirmed: NCLT Delhi

The NCLT Court V, New Delhi, ruled that the Committee of Creditors (CoC) holds authority to decide on liquidation under the Insolvency and Bankruptcy Code, 2016, even before confirming a resolution plan. In the case of M/s 5 Core Acoustics Private Limited, CoC unanimously opted for liquidation due to untraceable directors and lack of assets. \r

The NCLT referred to Section 33(2) and upheld CoC's decision, citing legislative intent and commercial wisdom. Following Sreedhar Tripathy vs. Gujarat State Financial Corporation, it affirmed CoC's wide powers. \r

Thus, it approved liquidation, relieving Radhey Shyam Yadav as Resolution Professional and appointing Rajeev Lochan as Liquidator.