“Committing default or failure of Resolution Plan may lead to liquidation of a body corporate under Insolvency and Bankruptcy Code, 2016 but could there be other circumstances for which a Tribunal may order for winding u

In case the Resolution Professional is unable to come-up with a resolution plan approved by at least sixty six percent of the Committee of Creditors or the plan submitted does not confirm the requirements of the Code, the Tribunal may pass an order of liquidation of the Corporate Debtor in terms of Section 33 of the Insolvency and Bankruptcy Code, 2016 so also in case the approved resolution plan is contravened by the Corporate Debtor. Apart from the above, Section 271 of the Companies Act, 2013 enumerates circumstances such as company's own resolution, fraudulent or felony activities, default in filing financial statements or annual returns for more than 5 consecutive years or just and equitable reasons for which Tribunal may order liquidation. If the company has acted against the interests of the sovereignty and integrity of India, the security of the State then also it may be wound-up.