# In the matter of Enfield Gems & Jewellery Ltd. CA(IB) No. 1320-KB-2019 in C.P. (IB) No. 1331-KB-2019

> NCLT judgment dated 2019-10-16. Citation: TCN-2019-NCLT-00952. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 16 Oct 2019
- **Citation:** TCN-2019-NCLT-00952
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/enfield-gems-jewellery-ltd-caib-no-1320-kb-2019-in-cp-ib-no-1331-kb-2019-309043b4

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, and an application under Section 33 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Enfields Gems & Jewellery Limited on April 23, 2019, followed by a moratorium and the appointment of an Interim Resolution Professional (IRP).

## Facts

Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Enfields Gems & Jewellery Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated on April 23, 2019, and Mr. Sanjai Kumar Gupta was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) approved the IRP as the Resolution Professional. However, the Corporate Debtor was absconding, and its assets were under attachment, making resolution impossible. The CoC decided to liquidate the Corporate Debtor in its meeting held on September 13, 2019. The Resolution Professional expressed his unwillingness to be appointed as Liquidator. The Financial Creditor proposed Ms. C.A. Sonu Jain as the new liquidator. The

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code (IBC) allows for the liquidation of a

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**Reasoning:** The court considered the progress reports filed by the Resolution Professional, the

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if resolution efforts are

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**Application:** Given the facts that the Corporate Debtor was absconding, had no saleable

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Union Bank of…
- **Respondents:** Enfields Gems &…

## Timeline

- **2019-04-23 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Enfields Gems &…
- **2019-05-22 — CoC Appr…**: Committee of Creditors approved the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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