Tribunal denies corporate insolvency resolution extension and orders liquidation following unanimous creditor approval

The National Company Law Tribunal rejected an extension for the corporate insolvency resolution process because creditors unanimously approved liquidation for the corporate debtor. No resolution plan received approval throughout the proceedings, leading the bench to order winding up. Judicial records highlighted a severe asset reduction of ₹120.17 crore during the resolution timeline. Liquidation becomes mandatory under the Insolvency and Bankruptcy Code when creditors unanimously vote to wind up a company rather than pursue a turnaround, or when deadlines expire without an approved resolution plan.

This shifts the focus from business revival to asset realization, replacing the management control of the debtor with an appointed liquidator who sells assets to settle dues according to the statutory waterfall mechanism, replacing the objective of a going-concern rescue. Insolvency professionals and creditors must immediately collate asset registers and ensure strict adherence to asset preservation standards to prevent further value erosion.

Stakeholders should track liquidation progress reports and prepare claims for submission to the liquidator within the prescribed statutory windows. Careful monitoring of asset sales ensures maximum realization for creditors during the winding-up phase.