Can the CoC, in some cases, choose not to undertake CIRP and directly order liquidation of corporate debtor?
Section 33(2) of the IBC states that during CIRP but before confirmation of the resolution plan, if the resolution professional informs the NCLT that a sixty-six per cent of the voting of the CoC has approved liquidation of corporate debtor; the NCLT shall pass an order of liquidation. This power of the CoC was upheld by NCLAT, New Delhi in Sunil S. Kakkad v Atrium Infocom Pvt Ltd Company Appeal (AT) (Insolvency) No. 194 of 2020.