# In the matter of J.R. Diamond Co. Appeal No.  53-252(3)-NCLT-AHM-2019

> NCLT judgment dated 2019-11-06. Citation: TCN-2019-NCLT-00705. This case involves an appeal filed by the Liquidator of M/s. J. R. Diamonds Pvt. Ltd. seeking…

- **Court:** NCLT
- **Order date:** 6 Nov 2019
- **Citation:** TCN-2019-NCLT-00705
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jr-diamond-co-appeal-no-53-2523-nclt-ahm-2019-63f84bae

## Summary

### Background

This case involves an appeal filed by the Liquidator of M/s. J. R. Diamonds Pvt. Ltd. seeking the restoration of the company's name to the statutory register of companies maintained by the Registrar of Companies (ROC), Gujarat. The company's name was struck off by the ROC's order dated 06.08.2018 due to the company's failure to file its Financial Statements & Statutory Annual Returns from F.Y. 2013-14 onwards and Annual Returns from F.Y. 2014-15 onwards. The Appellant argues that the company had assets at the time of deregistration and that the ROC's action was not justified, especially since the company was under Corporate Interim Resolution Process (CIRP) and moratorium under the I.B. Code.

## Facts

M/s. J. R. Diamonds Pvt. Ltd. was incorporated on 08.11.1977. The company's name was struck off from the register of companies by the Registrar of Companies (ROC), Gujarat, on 06.08.2018, due to the company's failure to file its Financial Statements & Statutory Annual Returns from F.Y. 2013-14 onwards and Annual Returns from F.Y. 2014-15 onwards. The company had assets worth Rs.81,26,35,384/- as on 31.03.2017, including investments in preference shares of M/s. Peacock Jewellery Ltd. amounting to Rs.4,50,00,000/-. The Liquidator of the company, Mr. Vinod Tarachand Agrawal, filed an appeal seeking restoration of the company's name. The company was under Corporate Interim Resolution Process (CIRP) and moratorium under the I.B. Code at the time the ROC passed the order

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## Issues and analysis

### Issue 1: Whether the action of the Registrar of Companies (ROC) in striking off the name of M/s. J. R. …

**Ratio:** The action of striking off the company's name is not legally valid if it violates the

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**Reasoning:** The Tribunal reasoned that the ROC's action was inconsistent with the provisions of

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**Interpretation:** Section 14 of the I.B. Code imposes a moratorium to protect the corporate

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**Application:** The ROC's action of striking off the company's name during the CIRP violated

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Vinod Tarachand…
- **Respondents:** J. R. Diamonds…; Registrar of…

## Timeline

- **1977-11-08 — Company Incor…**: M/s. J. R. Diamonds Pvt.…
- **2018-02-13 — CIRP Init…**: Tribunal admitted the I.B. Petition and initiated the Corporate Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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