Liquidator Appointment After CIRP Failure: Key Takeaways From NCLAT's Ruling

Who appoints the liquidator under IBC? NCLAT's latest ruling settles the debate on creditor primacy and NCLT's limited role.

1. Introduction: When Liquidation Begins, Who Chooses the Liquidator?

The Insolvency and Bankruptcy Code, 2016 ("IBC" or "the Code") is often celebrated for bringing creditor primacy and time-bound resolution into India's distressed asset regime. Yet, as the Code matures, the Indian insolvency jurisprudence continues to grapple with interpretive gaps left by legislative silences. One such gap lies at the intersection of creditor control and judicial discretion at the point where resolution gives way to liquidation.

In its judgment dated 01 December 2025 in Omkara Asset Reconstruction Pvt. Ltd. v. Amit Vijay Karia and a connected appeal, the National Company Law Appellate Tribunal ("NCLAT") has delivered a ruling that decisively tilts the balance in favour of creditor choice, even at the threshold of liquidation. The decision clarifies