# In the matter of Union Chains and Jewellers Pvt. Ltd. I.A. 1873 OF 2021 in C.P. No. 1113 of 2019

> NCLT judgment dated 2021-10-26. Citation: TCN-2021-NCLT-00696. The case involves an application (I.A. No. 1873/2021) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 26 Oct 2021
- **Citation:** TCN-2021-NCLT-00696
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/union-chains-and-jewellers-pvt-ltd-ia-1873-of-2021-in-cp-no-1113-of-2019-a50bf4c1

## Summary

### Background

The case involves an application (I.A. No. 1873/2021) filed by the Resolution Professional (RP), Mr. Ankur Kumar, seeking liquidation of Union Chains & Jewellers Private Limited (Corporate Debtor) under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC) and Regulation 3 of the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulation, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on a petition filed by Indiabulls Consumer Finance Limited under Section 7 of the IBC. The Committee of Creditors (CoC) was constituted, and in its 4th meeting, it was decided to initiate liquidation proceedings against the Corporate Debtor due to lack of operations and cooperation from the

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## Facts

Indiabulls Consumer Finance Limited initiated Corporate Insolvency Resolution Process (CIRP) against Union Chains & Jewellers Private Limited by filing a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 27.09.2019. Mr. Ankur Kumar was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The Committee of Creditors (CoC) was constituted on 06.11.2019. In its 4th meeting held on 24.06.2021, the CoC noted that there were no operations in the Corporate Debtor, and the directors were not cooperating. Considering the nearing end of the CIRP period, the CoC decided to initiate liquidation proceedings. The CoC approved a resolution for liquidation with a 94.62% majority, also

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Union Chains & Jewellers …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

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**Reasoning:** The CoC, with a 94.62% majority, decided to liquidate the Corporate Debtor due to the

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**Interpretation:** Section 33(2) grants the CoC the authority to decide on liquidation, and the

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**Application:** The CoC's decision to liquidate the Corporate Debtor, Union Chains &

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Indiabulls…
- **Respondents:** Union Chains &…; Union Chains And…

## Timeline

- **2019-09-27 — Admission of…**: The Tribunal admitted the petition under Section 7 of the Code filed by Indiabulls…
- **2019-11-06 — Constitution…**: The Committee of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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