Resolution Plan Below CoC’s Commercial Expectations: NCLT Approves Liquidation After Failed CIRP

This article details how the NCLT ordered liquidation after the CoC rejected all submitted resolution plans for being below its commercial expectations. The CoC found that the proposed plans neither met recovery benchmarks nor offered long-term sustainability, leading to a liquidation vote. The Tribunal accepted the CoC’s view, reiterating that judicial authorities cannot interfere in creditors’ commercial decisions unless the law is violated. It highlights that under IBC Section 33, once the CoC opts for liquidation, the NCLT must confirm it. The article also discusses the growing trend of liquidations due to low-value offers and how courts are protecting creditor autonomy. The ruling underscores the finality of CoC decisions, creditor-driven governance, and the importance of transparent valuation in CIRP outcomes.