# In the matter of J R Diamonds Pvt. Ltd. IA 309-2018 in CP (IB) No. 205-NCLT-AHM-2017

> NCLT judgment dated 2018-10-01. Citation: TCN-2018-NCLT-00687. IA 309 of 2018 was filed under Section 33(2) of the IB Code, 2016, seeking an order for…

- **Court:** NCLT
- **Order date:** 1 Oct 2018
- **Citation:** TCN-2018-NCLT-00687
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-r-diamonds-pvt-ltd-ia-309-2018-in-cp-ib-no-205-nclt-ahm-2017-acf10c9d

## Summary

### Background

IA 309 of 2018 was filed under Section 33(2) of the IB Code, 2016, seeking an order for liquidation of the Corporate Debtor Company, J.R. Diamonds Pvt. Ltd. The Committee of Creditors, composed of Operational Creditors, supported the resolution for liquidation. The Resolution Professional (RP) reported a lack of cooperation from the suspended management, the company's limited assets, and the expectation of an income tax refund. An attempt to find a resolution applicant by inviting expression of interest dated 2018-06-21 in Form G was unsuccessful.

## Facts

IA 309 of 2018 was filed seeking liquidation of J.R. Diamonds Pvt. Ltd. under Section 33(2) of the IB Code, 2016. The Committee of Creditors, consisting of Operational Creditors, supported the liquidation resolution passed on 2018-08-07. The RP, Vinod Tarachand Agarwal, reported a lack of cooperation from the suspended management and limited assets. An attempt to find a resolution applicant through an expression of interest dated 2018-06-21 was unsuccessful. The Committee of Creditors had three members: Kaushar Gems, Su-raj Diamond Industries Pvt. Ltd., and SJR Commodities & Consultancies Pvt. Ltd. The Committee of Creditors approved the resolution with 100% approval and recommended the RP to be continued as liquidator. The company expected some refund of income

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor Company, J.R. Diamonds Pvt. Ltd., should be liquidated under Section …

**Ratio:** Section 33(2) of the IB Code allows for the initiation of liquidation proceedings when

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**Reasoning:** The Adjudicating Authority considered the 100% approval of the Committee of Creditors for

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the Committee of

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**Application:** In this case, the 100% approval of the Committee of Creditors, coupled with the

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## Parties

- **Judges:** Harihar Prakash…
- **Appellants:** Nipun Si…
- **Respondents:** J. R. Diamonds…

## Timeline

- **2018-08-07 — Resolution for…**: The Committee of Creditors passed a resolution for liquidation of the Corporate Debtor…
- **2018-06-21 — Expression of…**: The RP and the Committee of Creditors invited expression of interest in Form G, but no…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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