CoC under IBC can Liquidate Corporate Debtor any Time after its Constitution or Before Resolution Plan is Confirmed: NCLT

The Delhi bench of the National Company Law Tribunal (NCLT) has ruled that the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code, 2016 (IBC) can decide to liquidate the Corporate Debtor anytime after its constitution and before confirmation of the resolution plan. In the case of M/s 5 Core Acoustics Private Limited, the CoC resolved for liquidation in its 2nd meeting, following the absence of operations and assets, with a 100% voting share. The NCLT approved the CoC’s unanimous decision and appointed Rajeev Lochan as the Liquidator, relieving the previous Resolution Professional, Radhey Shyam Yadav, from his assignment.