# In the matter of Mahendrakumar Babulal Jewels Pvt. Ltd. IA-446-2021 in CP (IB)-408-2018

> NCLT judgment dated 2021-12-21. Citation: TCN-2021-NCLT-00107. The case involves an application for the dissolution of the Corporate Debtor, M/s Mahendrakumar…

- **Court:** NCLT
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-NCLT-00107
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mahendrakumar-babulal-jewels-pvt-ltd-ia-446-2021-in-cp-ib-408-2018-6cde8898

## Summary

### Background

The case involves an application for the dissolution of the Corporate Debtor, M/s Mahendrakumar Babulal Jewels Pvt. Ltd., under Section 54(1) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by an Operational Creditor under Section 9 of the IB Code. Mr. Pinakin Surendra Shah was initially appointed as the Interim Resolution Professional (IRP), but was later replaced by Mr. Hemant Sharma as the Resolution Professional (RP). The Committee of Creditors (CoC) unanimously resolved to liquidate the Corporate Debtor. The Adjudicating Authority directed the Corporate Debtor to be liquidated and appointed Mr. Hemant Sharma as the Liquidator.

## Facts

An Operational Creditor initiated Corporate Insolvency Resolution Process (CIRP) against M/s Mahendrakumar Babulal Jewels Pvt. Ltd. under Section 9 of the IB Code, 2016. The application was admitted on 2018-11-16. Mr. Pinakin Surendra Shah was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) replaced Mr. Pinakin Shah with Mr. Hemant Sharma as the Resolution Professional (RP), confirmed on 2019-04-04. The CoC resolved to liquidate the Corporate Debtor on 2019-08-12. The Adjudicating Authority ordered the liquidation on 2019-09-17 and appointed Mr. Hemant Sharma as the Liquidator. The Liquidator sought and was granted an extension of the liquidation period on 2021-02-18. The Liquidator filed the Final report and Compliance

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Mahendrakumar Babulal Jewels Pvt. Ltd., should be dissolved …

**Ratio:** Section 54(2) of the IB Code empowers the Adjudicating Authority to order the dissolution

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**Reasoning:** The Adjudicating Authority considered the documents placed on record, including the Final

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**Interpretation:** Section 54(2) provides the legal basis for the Adjudicating Authority to

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**Application:** The Adjudicating Authority applied Section 54(2) to the facts of the case,

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## Parties

- **Judges:** DEEPTI M…; KAUSHALENDRA…
- **Appellants:** Hemant S…
- **Respondents:** M/s Mahendrakumar…; DK Jewels Pvt.…

## Timeline

- **2018-11-16 — CIRP Admi…**: CP(IB) No. 408 of 2018…
- **2019-04-04 — RP Appoin…**: Mr. Hemant Sharma…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54(1) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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