CoC can decide to liquidate Corporate Debtor before resolution plan confirmation: NCLAT

Sanjay Dave Vs Andhra Bank Ltd (NCLAT Delhi) In the case of Sanjay Dave Vs Andhra Bank Ltd., the National Company Law Appellate Tribunal (NCLAT) clarified that under Section 33 of the Insolvency and Bankruptcy Code (IBC), the Committee of Creditors (CoC) holds the authority to decide on the liquidation of a Corporate Debtor at any time before the resolution plan is confirmed by the Adjudicating Authority. Section 33 explicitly allows the CoC, with a 66% voting majority, to recommend liquidation if they believe it is the best course of action. This decision can be made at any stage after the Co...