# In the matter of Tara Jewels Ltd. MA 2630-2019 in CP(IB)1541(MB)-2017

> NCLT judgment dated 2019-07-30. Citation: TCN-2019-NCLT-02225. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 30 Jul 2019
- **Citation:** TCN-2019-NCLT-02225
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tara-jewels-ltd-ma-2630-2019-in-cpib1541mb-2017-15ab96fb

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Tara Jewels Ltd, under Section 33(1) of the Insolvency and Bankruptcy Code (IBC), 2016. An earlier petition under Section 9 of the IBC against Tara Jewels Limited was admitted on 2018-11-01. Despite efforts by the RP, the resolution process failed as Prospective Resolution Applicants (PRAs) withdrew or did not submit resolution plans. The Committee of Creditors (CoC) approved liquidation with a 97.97% vote share.

## Facts

A petition under Section 9 of the IBC against Tara Jewels Limited was admitted on 2018-11-01. Brijendra Kumar Mishra was appointed as the Resolution Professional. Despite efforts, only 5 Prospective Resolution Applicants (PRAs) showed interest, but one withdrew, and two did not revert. The deadline for submitting a resolution plan was extended twice, first to 2019-06-29 and then to 2019-07-10. No resolution plan was received by the last CoC meeting held on 2019-07-26. The CoC, with 97.97% voting share, approved the liquidation of the Corporate Debtor. The RP consented to be appointed as the liquidator. The 270-day period for the resolution process expired on 2019-07-20.

## Issues and analysis

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

**Ratio:** Section 33 of the IBC allows for the initiation of liquidation proceedings when the

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**Reasoning:** The court reasoned that the resolution process had failed because no resolution plan was

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**Interpretation:** Section 33 is interpreted to mean that if the CIRP fails, liquidation is the

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**Application:** Since no resolution plan was received and the CoC approved liquidation, Section

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## Parties

- **Judges:** V. P. S…; RAJESH S…
- **Appellants:** Brijendra Kumar…
- **Respondents:** Tara Jewe…; Vipul Di…

## Timeline

- **2018-11-01 — Section 9 Petition…**: Petition filed under Section 9 of the IBC…
- **N/A — RP Appoi…**: Brijendra Kumar Mishra was appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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