# In the matter of Indian Gem & Jewellery Imperial Pvt. Ltd. IA No. 1370-KB-2020 in CP (IB) No.1365-KB-2019

> NCLT judgment dated 2021-01-22. Citation: TCN-2021-NCLT-03244. The case involves an application filed by the Resolution Professional (RP) upon the…

- **Court:** NCLT
- **Order date:** 22 Jan 2021
- **Citation:** TCN-2021-NCLT-03244
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indian-gem-jewellery-imperial-pvt-ltd-ia-no-1370-kb-2020-in-cp-ib-no1365-kb-2019-fd391235

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) upon the instructions of the Committee of Creditors (CoC) seeking liquidation of the Corporate Debtor, Indian Gem & Jewellery Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by Vasu Publicity (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 in newspapers, fixing a deadline for submitting claims. The CoC was duly constituted, but no Expression of Interest (EoI) was received from any prospective resolution applicant.

## Facts

Vasu Publicity Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Indian Gem & Jewellery Private Limited, the corporate debtor. The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP) and appointed an Interim Resolution Professional (IRP). A public announcement was made to invite claims from creditors. The Committee of Creditors (CoC) was constituted. Despite efforts, no Expression of Interest (EoI) was received for a resolution plan. The CoC, noting the Corporate Debtor's ceased operations, lack of major assets, and the impact of the Covid-19 pandemic, resolved to liquidate the Corporate Debtor with 100% voting in favor. The Resolution Professional (RP)

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Indian Gem & Jewellery Private Limited, should be liquidated due …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code (IBC) allows the Adjudicating

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**Reasoning:** The CoC resolved by 100% voting share to liquidate the Corporate Debtor, indicating a

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**Interpretation:** Section 33(2) provides a clear mechanism for liquidation when a resolution plan

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**Application:** In this case, the CoC's decision, backed by 100% voting share, satisfies the

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Vasu Publicity…
- **Respondents:** Indian Gem &…

## Timeline

- **2019-11-13 — Order for CIRP…**: Adjudicating Authority orders initiation of Corporate Insolvency Resolution Process…
- **2019-11-16 — Public Annou…**: Public announcement made in Business Standard (English) and Aajkal (Bengali) newspapers,…

## 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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