# 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-00954. 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-00954
- **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-feb08fcf

## 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, to initiate Corporate Insolvency Resolution Process (CIRP) against Enfields Gems & Jewellery Ltd. The CIRP was initiated on April 23, 2019, and a moratorium was declared. Sanjai Kumar Gupta was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) approved Sanjai Kumar Gupta as the Resolution Professional (RP). The RP filed progress reports indicating that the Corporate Debtor was absconding, and there were no saleable assets. The CoC concluded that resolution was not possible and decided to liquidate the Corporate Debtor. The RP expressed his inability to act as liquidator. The CoC proposed the name of Ms. Sonu Jain as the new

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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 Committee of Creditors (CoC) concluded that resolution was not possible due to the

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**Interpretation:** Section 33 of the IBC provides for liquidation when resolution efforts fail.

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**Application:** Given the CoC's decision and the RP's reports, the Tribunal applied Section 33

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## Parties

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

## Timeline

- **2019-04-23 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor…
- **2019-05-22 — Approval…**: The Committee of Creditors approved the IRP as a Resolution Professional by 100% voting…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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