# 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-04375. 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-04375
- **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-a8b9702f

## 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 Code. The RP, Mr. Reetesh Kumar Agarwal, was appointed and later confirmed. Public announcements were made inviting creditors to file their claims. However, no resolution plan was received, and the Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor due to the absence of cash flow and the closure of the business.

## Facts

Punjab National Bank, a Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Bansal Diamonds Private Limited by filing a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the petition on 2022-05-10. Mr. Reetesh Kumar Agarwal was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was constituted on 2022-06-10. Despite efforts to find a resolution plan, none were received due to the lack of cash flow and closure of the Corporate Debtor's business. In a meeting on 2022-07-26, the CoC resolved to liquidate the Corporate Debtor with

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## Issues and analysis

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

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

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**Reasoning:** The Adjudicating Authority considered the fact that no resolution plan was received and

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when CIRP fails. The CoC's

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**Application:** In this case, the RP filed the application under section 33(2) after the CoC

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Reetesh Kumar…
- **Respondents:** Bansal Diamonds…; Punjab National…
- **Advocates:** Adarsh…; Shreyansh D…

## Timeline

- **2022-05-10 — Initiation…**: Adjudicating Authority directed initiation of Corporate Insolvency Resolution Process…
- **2022-05-12 — Public Annou…**: Public announcement made in Business Standard (English) and Business Standard (Hindi)…

## 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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