# In the matter of Gems Care & Cure Health Center Private Limited IA No. 1247-KB-2020 in CP (IB) No. 201-KB-2019

> NCLT judgment dated 2021-01-13. Citation: TCN-2021-NCLT-03301. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 13 Jan 2021
- **Citation:** TCN-2021-NCLT-03301
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gems-care-cure-health-center-private-limited-ia-no-1247-kb-2020-in-cp-ib-no-201-b95f46f7

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Gems Care & Cure Health Center Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by Nu Shri Shyam Pharmaceuticals Private Limited (operational creditor) under section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority had directed the initiation of CIRP and appointed an Interim Resolution Professional (IRP). Public announcement was made, and the Committee of Creditors (CoC) was constituted. An invitation for Expression of Interest (Eol) was published, and an Eol was received from Eskag Sanjeevani Private Limited. A Resolution Plan was

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## Facts

Nu Shri Shyam Pharmaceuticals Private Limited, an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Gems Care & Cure Health Center Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority approved the initiation of CIRP. Rajesh Lihala was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). An invitation for Expression of Interest (Eol) was published, and Eskag Sanjeevani Private Limited submitted an Eol. A Resolution Plan was submitted by Eskag Sanjeevani Private Limited and discussed in multiple CoC meetings. The CoC rejected the Resolution Plan with 100% votes in its 20th meeting held on 01.10.2020. The CIRP period

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be allowed given the …

**Ratio:** The legal principle is that if a resolution plan is not approved by the CoC and the CIRP

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**Reasoning:** The court reasoned that the sole Resolution Plan received was rejected by the CoC with

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**Interpretation:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016 mandates liquidation

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**Application:** In this case, the CoC rejected the resolution plan, and the CIRP period

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Gems Care & Cure…; Gems Care & Cure…

## Timeline

- **2019-08-29 — Order for CIRP…**: Adjudicating Authority passed an order for initiation of CIRP against the Corporate…
- **2019-09-02 — Public Annou…**: Public announcement in Form 'A' was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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