# In the matter of P & S Jewellery ltd. INVP No.22 of 2018, MA 315 of 2018 & INVP 23 of 2018 AND CP 1042-I&B-NCLT-MB-2017

> NCLT judgment dated 2018-07-30. Citation: TCN-2018-NCLT-01044. The case involves an application for liquidation of P&S Jewellery Ltd. under Section 33 of the…

- **Court:** NCLT
- **Order date:** 30 Jul 2018
- **Citation:** TCN-2018-NCLT-01044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/p-s-jewellery-ltd-invp-no22-of-2018-ma-315-of-2018-invp-23-of-2018-and-cp-1042-i-d71d628b

## Summary

### Background

The case involves an application for liquidation of P&S Jewellery Ltd. under Section 33 of the Insolvency and Bankruptcy Code (IBC) 2016. The corporate debtor, P&S Jewellery Ltd., faced financial difficulties due to foreign exchange fluctuations, a drop in gold prices, and regulatory policies like the 80:20 Gold Import Scheme. The company's account was declared NPA on 2015-03-31. An application under Section 10 of the Insolvency Code was filed on 2017-05-25 and admitted on 2017-05-29. Several intervention applications were filed, including one by a promoter-director, Mr. Paresh Shah, seeking consideration of his resolution plan, and others by laborers and a shareholder, all of which were ultimately rejected.

## Facts

P&S Jewellery Ltd., incorporated in 1996, experienced financial distress due to various factors, including foreign exchange fluctuations, a drop in gold prices, and regulatory changes. The company's account was declared a Non-Performing Asset (NPA) on March 31, 2015. The actual amount of loan sanctioned by the Lead Bank of the Consortium Union Bank of India was about ₹772 crores vide sanction letter dated 25 October 2013, whereas the actual disbursement by all the lenders until 31 March 2015 has only been Rs.490 crores leaving a sum, of ₹282 crores. The company filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC) on May 25, 2017, which was admitted on May 29, 2017. Several resolution plans were submitted, including one by the

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## Issues and analysis

### Issue 1: Whether the resolution plans submitted were viable and compliant with Section 29-A of the …

**Ratio:** Section 29-A of the IBC disqualifies certain individuals, including willful defaulters,

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**Reasoning:** The NCLT found that the resolution plans submitted were not viable due to the

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**Interpretation:** Section 29-A is interpreted to strictly disqualify individuals deemed to be

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**Application:** The NCLT applied Section 29-A to disqualify Mr. Paresh Shah from submitting a

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Paresh…
- **Respondents:** P & S Jewellery…; Udupi Vasudev…
- **Advocates:** Nishit D…; Prakash S…; +5 more

## Timeline

- **1996-01-01 — Company Incor…**: P&S Jewellery Ltd. was…
- **2015-03-31 — Account Decla…**: The account of P&S Jewellery Ltd. was…

## 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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