NCLT Orders Liquidation for Defaulted Resolution Plan

The Chandigarh Bench of the National Company Law Tribunal ordered liquidation of the corporate debtor after the successful resolution applicant failed to implement the approved resolution plan and defaulted in making the payments mandated under the plan. 

The Tribunal held that continued non-compliance with an approved resolution plan constitutes a contravention of Section 33(3) of the Insolvency and Bankruptcy Code, warranting liquidation of the corporate debtor.