NCLT’s decision to liquidate corporate debtor was upheld as the CIRP period was completed and there was no resolution plan

Case Details: Dinesh Gupta v. Vikram Bajaj Liquidator Best Foods Ltd. - [2021] 131 taxmann.com 3 (NCL-AT)

Judiciary and Counsel Details

• M. Venugopal, Acting Chairperson
• V.P. Singh and Dr. Ashok Kumar Mishra, Technical Member
• Sumesh Dhawan and Ms. Vatsala Kak, Advs. for the Appellant. Abhishek Anand and Viren Sharma for the Respondent.

Facts of the Case

In the instant case, the Adjudicating Authority by an impugned order admitted an application filed by the operational creditor to initiate an insolvency resolution process against the corporate debtor. Accordingly, the Interim Resolution Professional (IRP) was appointed however, the resolution plan submitted by the sole resolution applicant ‘Maritime’ was not in consonance with the code. The Committee of Creditors thus requested ‘Maritime’ to make changes to the resolution plan. However, it failed to submit a modified resolution plan. Meanwhile, the extended period of the corporate insolvency resolution process was also over. The Appellate Tribunal held that since there was no approved resolution plan of the Committee of Creditors, the decision of NCLT to liquidate corporate debtor was free from legal errors and was to be upheld.