# In the matter of Shree Ashtvinayak Gems & Stones Pvt. Ltd. IA-1579-2021 in (IB) 2165 (ND) 2019

> NCLT judgment dated 2021-11-16. Citation: TCN-2021-NCLT-00494. The case involves an application for the liquidation of Shree Ashtvinayak Gems and Stones…

- **Court:** NCLT
- **Order date:** 16 Nov 2021
- **Citation:** TCN-2021-NCLT-00494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-ashtvinayak-gems-stones-pvt-ltd-ia-1579-2021-in-ib-2165-nd-2019-cc2c8f4c

## Summary

### Background

The case involves an application for the liquidation of Shree Ashtvinayak Gems and Stones Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The applicant, Laxmi Dia Jewel Private Limited, is the operational creditor. The Corporate Insolvency Resolution Process (CIRP) was initiated on December 10, 2019. The applicant sought exclusion of the lockdown period imposed by the Central Government and an extension of 90 days + 60 days respectively from the CIRP period. The Adjudicating Authority excluded 98 days and extended the CIRP period by 90 days + 60 days. The Committee of Creditors (CoC), with 100% voting shares, resolved to file an application before the NCLT for the liquidation of the Corporate Debtor. The Resolution Professional (RP) did

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## Facts

Laxmi Dia Jewel Private Limited, the operational creditor, filed an application for the liquidation of Shree Ashtvinayak Gems & Stones Pvt Ltd, the corporate debtor, under Section 33(2) of the IBC, 2016. The CIRP was initiated on December 10, 2019. The applicant sought exclusion of the lockdown period and an extension of 90+60 days. The Adjudicating Authority excluded 98 days and extended the CIRP by 90+60 days. The CoC, with 100% voting share, resolved to liquidate the corporate debtor. The RP, Ashok Kumar Juneja, did not consent to continue as liquidator. The applicant filed an affidavit regarding the pending investigation of the Ex-director. The last audited balance sheet available on the MCA portal was for FY 2015-2016, showing a turnover of over Rs 1359

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Shree Ashtvinayak Gems and Stones Private Limited, should be …

**Ratio:** Section 33(1)(a) of the IBC, 2016, mandates liquidation if the Adjudicating Authority

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**Reasoning:** The Adjudicating Authority noted that no resolution plan had been received for the

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**Interpretation:** Section 33(1)(a) provides a clear directive for liquidation when a resolution

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**Application:** In this case, since no resolution plan was received and the CIRP period had

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; AVINASH K.…
- **Appellants:** Laxmi Dia Jewel…
- **Respondents:** Shree Ashtvinayak…

## Timeline

- **2019-12-10 — CIRP Init…**: Corporate Insolvency Resolution…
- **2021-02-10 — CIRP End…**: CIRP period ended after…

## 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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