# In the matter of Bansal Diamonds Pvt. Ltd. IA No.4290(PB)-2022 in CP (IB) No.945(PB)-2020

> NCLT judgment dated 2023-03-02. Citation: TCN-2023-NCLT-04387. The case pertains to an application filed by the Resolution Professional (RP) under section…

- **Court:** NCLT
- **Order date:** 2 Mar 2023
- **Citation:** TCN-2023-NCLT-04387
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bansal-diamonds-pvt-ltd-ia-no4290pb-2022-in-cp-ib-no945pb-2020-a17803dd

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) under section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor, Bansal Diamonds Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by Punjab National Bank under section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority appointed Mr. Reetesh Kumar Agarwal as the Interim Resolution Professional (IRP), who was later confirmed as RP.

## Facts

Punjab National Bank, a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP) against Bansal Diamonds Private Limited. Reetesh Kumar Agarwal was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Despite efforts to find a resolution plan, the Committee of Creditors (CoC) found no possibility of revival due to the absence of cash flow and the closure of the Corporate Debtor's business. The CoC, with 84% voting share, recommended liquidation. The RP then filed an application under Section 33(2) of the Code for liquidation. The RP obtained consent from Reetesh Kumar Agarwal to act as liquidator. The

…

## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional (RP) under section 33(2) of the …

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

…

**Reasoning:** The Committee of Creditors (CoC) recommended liquidation with 84% voting share,

…

**Interpretation:** Section 33(2) provides the legal basis for the Adjudicating Authority to order

…

**Application:** In this case, the CoC, with a significant majority, determined that there was

…

## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Respondents:** Bansal Diamonds…; Punjab National…

## Timeline

- **2022-05-10 — Order for CIRP…**: The Adjudicating Authority passed an order for initiation of the Corporate Insolvency…
- **2022-05-12 — Public Annou…**: The Applicant made a public announcement in Form A under IBBI (Insolvency Resolution…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bansal-diamonds-pvt-ltd-ia-no4290pb-2022-in-cp-ib-no945pb-2020-a17803dd