Case Note & Summary
The appeal was filed against an order dated 10.04.2026, which directed the liquidation of the corporate debtor. The Appellant, a resolution applicant and promoter, submitted a plan alongside three other applicants. However, the Committee of Creditors (CoC) rejected the plans from two other applicants and found the Appellant's plan non-compliant during the 14th CoC meeting. The Appellant contended that other applicants were given additional time to submit addendums, while he was not afforded the same opportunity. The court noted that since no resolution plan was approved during the Corporate Insolvency Resolution Process (CIRP), the only consequence was liquidation, which the Adjudicating Authority rightly directed. Under Regulation 2B of the IBBI Liquidation Process Regulations, the Appellant was permitted to submit a scheme within 90 days from the liquidation order. The Appellant indicated an intention to submit a scheme within two weeks, and the court directed that the liquidator would present this scheme to the creditors for consideration. The appeal was disposed of accordingly.
Headnote
A) Insolvency Law - Liquidation Process - Compliance of Resolution Plans - Insolvency and Bankruptcy Code, 2016, Section 33 - The Appellant's resolution plan was deemed non-compliant, leading to the Adjudicating Authority's order for liquidation. The court held that since no plan was approved during the Corporate Insolvency Resolution Process (CIRP), liquidation was the only viable outcome (Paras 2-4). B) Insolvency Law - Eligibility to Submit Scheme - Insolvency and Bankruptcy Code, 2016, Regulation 2B - The Appellant, having submitted a resolution plan, was eligible to propose a scheme within 90 days of the liquidation order. The court allowed the Appellant to submit a scheme to the liquidator for consideration (Paras 5-7).
Issue of Consideration
Whether the Appellant was given a fair opportunity to comply with the resolution plan requirements and the implications of the liquidation order.
Final Decision
The appeal was dismissed, allowing the Appellant to submit a scheme within two weeks for consideration by the liquidator.
Law Points
- Liquidation process
- Corporate insolvency resolution
- Eligibility to submit scheme
- Compromise or arrangement under Companies Act
