# In the matter of GEM Batteries Pvt. Ltd. IA-3697-2021 in CP (IB) - 921-ND-2020

> NCLT judgment dated 2021-09-17. Citation: TCN-2021-NCLT-01090. The case pertains to IA-3697/2021 filed in CP (IB) – 921/ND/2020, concerning Gem Batteries Pvt.…

- **Court:** NCLT
- **Order date:** 17 Sept 2021
- **Citation:** TCN-2021-NCLT-01090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gem-batteries-pvt-ltd-ia-3697-2021-in-cp-ib-921-nd-2020-1377336a

## Summary

### Background

The case pertains to IA-3697/2021 filed in CP (IB) – 921/ND/2020, concerning Gem Batteries Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of CP (IB) – 921/ND/2020 on 01.12.2020. Mr. Chandra Prakash was appointed as the Interim Resolution Professional (IRP). Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was formed, initially with two financial creditors, later reconstituted with one more. The CoC confirmed the appointment of the Applicant as Resolution Professional (RP), pending confirmation by the Adjudicating Authority. The applicant convened CoC meetings to discuss the Expression of Interest (EOI) and Form G. The CIRP date was extended till 18.08.2021. The CoC

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Gem Batteries Pvt. Ltd. after the admission of CP (IB) – 921/ND/2020 on 01.12.2020. Mr. Chandra Prakash was appointed as the Interim Resolution Professional (IRP). Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was formed, initially with two financial creditors, and later reconstituted with one additional financial creditor. The CoC confirmed the appointment of Mr. Chandra Prakash as the Resolution Professional (RP). The 3rd CoC meeting was convened on 17.02.2021 to present the draft Expression of Interest (EOI) and Form G. The 4th CoC meeting on 22.04.2021 discussed the EOI submitted by the erstwhile promoter. The financial creditor RBL Bank

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in ordering the liquidation of the Corporate …

**Ratio:** Section 33 of the Insolvency & Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The CoC, in its 7th meeting, recommended liquidation with 100% voting as no Expression of

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**Interpretation:** Section 33 provides a mechanism for liquidation when the CIRP fails. The

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**Application:** Given that no EOI or settlement proposal was received, the Adjudicating

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## Parties

- **Judges:** P.S.N. P…; Narender Kumar…
- **Appellants:** Chandra P…
- **Respondents:** Gem Batterries…

## Timeline

- **2020-12-01 — Admission of CP (IB) –…**: CP (IB) – 921/ND/2020 was admitted by the Adjudicating Authority, initiating the…
- **2020-12-01 — Appointment…**: Mr. Chandra Prakash was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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