# In the matter of Sharda Gems And Jewels Pvt. Ltd. (IB)-372(ND)-2017

> NCLT judgment dated 2018-10-31. Citation: TCN-2018-NCLT-00429. The case involves an application under Section 33(1) of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 31 Oct 2018
- **Citation:** TCN-2018-NCLT-00429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sharda-gems-and-jewels-pvt-ltd-ib-372nd-2017-a5135614

## Summary

### Background

The case involves an application under Section 33(1) of the Insolvency and Bankruptcy Code (IBC) filed by the Resolution Professional (RP). The RP brought on record the resolution passed by the Committee of Creditors (COC) to proceed with the liquidation of the Corporate Debtor, citing a low probability of business revival. A resolution dated July 9, 2018, and the consent of Mr. Debashish Nanda to act as the Insolvency Liquidator were also placed on record.

## Facts

The Resolution Professional (RP) filed an application under Section 33(1) of the IBC, seeking liquidation of the Corporate Debtor. The Committee of Creditors (COC) had passed a resolution to proceed with liquidation, based on the assessment that there was a low probability of the Corporate Debtor's business revival. A resolution dated July 9, 2018, was placed on record. Mr. Debashish Nanda's consent to act as the Insolvency Liquidator was also submitted and taken on record. The application was filed before the New Delhi Bench of the National Company Law Tribunal (NCLT) on October 31, 2018. The Corporate Debtor is M/s. Dailmer Financial Services Pvt. Ltd. The application was filed against M/s. Sharda Gems And Jewels Pvt. Ltd.

## Issues and analysis

### Issue 1: Whether the application under Section 33(1) of the IBC for liquidation should be allowed, given the …

**Ratio:** Section 33(1) of the IBC allows for liquidation upon the approval of the COC when revival

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**Reasoning:** The court considered the resolution passed by the COC, which indicated a low probability

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**Interpretation:** Section 33(1) of the IBC is interpreted to mean that if the COC determines that

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**Application:** Given the COC's assessment of low revival probability, the court applied

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## Parties

- **Judges:** DeepaKr…; Ina Mal…
- **Respondents:** M/s. Dailmer…; M/s. Sharda Gems…

## Timeline

- **2018-07-09 — Resolutio…**: Resolution dated 9th July,…
- **2018-10-31 — Hearing…**: Hearing before the New Delhi Bench of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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