It's hard to know all the things that might be wrong here since you only show a small piece of your code, but one thing that is wrong is the filename string. The \ character in Javascript is an escape mechanism so that the string 'C:\Users\i123\Desktop\test.txt' is not what you want it to be. If you really need backslashes in the string for a Windows filename, then you would need to use this:
'C:\\Users\\i123\\Desktop\\test.txt'
Other things I notice about your code:
Returning a value from the readFile() callback does nothing. It just returns a value back into the bowels of the async file I/O which does nothing.
When you get a file error, you aren't doing anything with the res which presumably means this route isn't doing anything and the browser will just be left waiting.