# In the matter of Valuemart Gold & Jewels Ltd. C.P. (IB)No. 55-BB-2020

> NCLT judgment dated 2020-02-13. Citation: TCN-2020-NCLT-01971. The case pertains to a Corporate Insolvency Resolution Process (CIRP) initiated by S. Rama…

- **Court:** NCLT
- **Order date:** 13 Feb 2020
- **Citation:** TCN-2020-NCLT-01971
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/valuemart-gold-jewels-ltd-cp-ibno-55-bb-2020-d5d9384b

## Summary

### Background

The case pertains to a Corporate Insolvency Resolution Process (CIRP) initiated by S. Rama Narayanan, the Petitioner/Operational Creditor, against M/s. Valuemart Gold & Jewels Ltd., the Respondent/Corporate Debtor, under Section 9 of the IBC, 2016. The petition was filed due to a default of Rs. 6,43,200/-, comprising a principal amount of Rs. 3,20,000/- and interest at 24% p.a. The petition was initially filed on 20.11.2019, but faced office objections that were not rectified by the petitioner.

## Facts

S. Rama Narayanan, an operational creditor, filed C.P.(IB) No.55/BB/2020 under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Valuemart Gold & Jewels Ltd., the corporate debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The basis for the petition was a default of Rs. 6,43,200/-, which included a principal amount of Rs. 3,20,000/- and interest at 24% per annum. The petition was filed on 20.11.2019, and office objections were raised. The petitioner failed to rectify these objections despite being notified via email on 10.12.2019. The case was listed for orders regarding non-compliance on 03.02.2020, but neither the petitioner nor their counsel appeared. The case was then listed for dismissal on 13.02.2020, and again,

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## Issues and analysis

### Issue 1: Whether the petition C.P.(IB) No.55/BB/2020 is liable to be dismissed for default due to …

**Ratio:** A petition can be dismissed for default if the petitioner fails to diligently prosecute

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**Reasoning:** The court reasoned that the petitioner's repeated failure to address the office

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**Interpretation:** The interpretation is that a petitioner has a responsibility to actively pursue

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**Application:** In this case, the petitioner, S. Rama Narayanan, failed to rectify the office

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** S. Rama Nar…
- **Respondents:** Valuemart Gold &…; Valuemart Gold…

## Timeline

- **2019-11-20 — Petition…**: C.P.(IB) No.55/BB/2020 filed by S. Rama…
- **2019-12-10 — Office Obj…**: Office objection note sent to…

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