33. (1) Where the Adjudicating Authority, -
(a) before the expiry of the insolvency resolution process period or the
maximum period permitted for completion of the corporate insolvency
resolution process under section 12 or the fast track corporate insolvency
resolution process under section 56, as the case may be, does not receive a
resolution plan under sub-section (6) of section 30; or
(b) rejects the resolution plan under section 31 for the non-compliance of
the requirements specified therein,
it shall-
(i) pass an order requiring the corporate debtor to be liquidated in the
manner as laid down in this Chapter;
(ii) issue a public announcement stating that the corporate debtor is in
liquidation; and
(iii) require such order to be sent to the authority with which the
corporate debtor is registered.
(2) Where the resolution professional, at any time during the corporate
insolvency resolution process but before confirmation of resolution plan,
intimates the Adjudicating Authority of the decision of the committee of
creditors to liquidate the corporate debtor, the Adjudicating Authority
shall pass a liquidation order as referred to in sub-clauses (i), (ii) and
(iii) of clause (b) of sub-section (1).
(3) Where the resolution plan approved by the Adjudicating Authority is
contravened by the concerned corporate debtor, any person other than the
corporate debtor, whose interests are prejudicially affected by such
contravention, may make an application to the Adjudicating Authority for a
liquidation order as referred to in sub-clauses (i), (ii) and (iii) of
clause (b) of sub-section (1).
(4) On receipt of an application under sub-section (3), if the Adjudicating
Authority determines that the corporate debtor has contravened the
provisions of the resolution plan, it shall pass a liquidation order as
referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section
(1).
(5) Subject to section 52, when a liquidation order has been passed, no suit
or other legal proceeding shall be instituted by or against the corporate
debtor:
Provided that a suit or other legal proceeding may be instituted by the
liquidator, on behalf of the corporate debtor, with the prior approval of
the Adjudicating Authority.
(6) The provisions of sub-section (5) shall not apply to legal proceedings
in relation to such transactions as may be notified by the Central
Government in consultation with any financial sector regulator.
(7) The order for liquidation under this section shall be deemed to be a
notice of discharge to the officers, employees and workmen of the corporate
debtor, except when the business of the corporate debtor is continued during
the liquidation process by the liquidator.