# In the matter of Firestar Diamond International Pvt. Ltd. IA No. 822 of 2021 in C.P. (IB) No. 2096-MB-2019

> NCLT judgment dated 2021-07-29. Citation: TCN-2021-NCLT-01549. The application was filed under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 29 Jul 2021
- **Citation:** TCN-2021-NCLT-01549
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/firestar-diamond-international-pvt-ltd-ia-no-822-of-2021-in-cp-ib-no-2096-mb-201-9d0baeae

## Summary

### Background

The application was filed under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 31(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, seeking modification in the list of stakeholders of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by the NCLT Mumbai Bench by order dated 2019-09-25 upon admission of a Petition under Section 7 of the Code. Mr. Ram Ratan Kanoongo was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) in its 4th meeting held on 2019-12-02 passed a resolution for liquidation of the Corporate Debtor with 98.5% voting share. The Tribunal vide Order dated 2020-02-26 commenced the

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Firestar Diamond International Private Limited was initiated by the NCLT Mumbai Bench on 2019-09-25. Mr. Ram Ratan Kanoongo was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) resolved for liquidation on 2019-12-02 with 98.5% voting share. The liquidation process commenced on 2020-02-26, and Mr. Santanu T. Ray was appointed as the Liquidator. A public announcement was made, setting 2020-04-02 as the last date for claim submissions. The Liquidator received claims from various stakeholders, including a consolidated claim from Punjab National Bank (which included claims from Oriental Bank of Commerce and United Bank of India due to amalgamation) amounting to

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## Issues and analysis

### Issue 1: Whether the claims furnished by the stakeholders after the stipulated period should be admitted, …

**Ratio:** The ratio is based on the principle that the liquidation process should protect the

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**Reasoning:** The court reasoned that the country was under lockdown due to the Covid-19 pandemic, and

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**Interpretation:** The interpretation is that the timelines prescribed in the Code and Liquidation

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Bhaskara Pantula…; Narendra Kumar…
- **Appellants:** Santanu T…
- **Respondents:** Firestar Diamond…

## Timeline

- **2019-09-25 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2019-12-02 — Liquidation Re…**: Committee of Creditors (CoC) passed a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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