# In the matter of MahendraKumar Babulal Jewels Private Limited IA No. 504-NCLT-AHM-2019 in C.P. NO. (I.B) 408-9-NCLT-AHM-2018

> NCLT judgment dated 2019-09-17. Citation: TCN-2019-NCLT-01426. The case involves an application filed by the Resolution Professional (RP) seeking an order for…

- **Court:** NCLT
- **Order date:** 17 Sept 2019
- **Citation:** TCN-2019-NCLT-01426
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mahendrakumar-babulal-jewels-private-limited-ia-no-504-nclt-ahm-2019-in-cp-no-ib-19d44681

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking an order for the liquidation of the Corporate Debtor, M/s Mahendrakumar Babulal Jewels Pvt. Ltd., under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 (IB Code). The Corporate Insolvency Resolution Process (CIRP) was initiated after the admission of Company Petition No. 408/2018 on 16.11.2018 under Section 9 of the IB Code. Shri Pinakin Surendra Shah was initially appointed as the Interim Resolution Professional (IRP), followed by the appointment of Shri Hemant Sharma as the RP on 04.04.2019.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Mahendrakumar Babulal Jewels Pvt. Ltd. after the admission of Company Petition No. 408/2018 on 16.11.2018 under Section 9 of the IB Code. Shri Pinakin Surendra Shah was initially appointed as the Interim Resolution Professional (IRP), followed by the appointment of Shri Hemant Sharma as the RP on 04.04.2019. The Committee of Creditors (CoC) was formed, and several meetings were held to facilitate the CIRP. In the 5th CoC meeting held on 31.05.2019, the CoC members resolved to create a corpus of Rs. 8,00,000/- for meeting the CIRP costs. In the 6th CoC meeting held on 24.06.2019, the members were apprised about the requirement of funds by RP to meet CIRP expenses. In the 7th CoC meeting held on

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s Mahendrakumar Babulal Jewels …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The Adjudicating Authority considered the fact that despite extending the CIRP period, no

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**Interpretation:** Section 33(1) of the IB Code is interpreted to mean that if the CIRP fails to

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**Application:** In this case, the CIRP failed to produce a viable Resolution Plan, and the CoC

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Hemant S…
- **Respondents:** M/s Mahendrakumar…; M/s D. K.…

## Timeline

- **2018-11-16 — Admission of Company…**: Company Petition No. 408/2018 was…
- **2018-12-03 — Appointment of Interim…**: Shri Pinakin Surendra Shah was appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(15) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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