# In the matter of Delhi Diamonds Pvt. Ltd. IA-5317-2022 in IB-1117-ND-2020

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02698. The case pertains to the liquidation of M/s. Delhi Diamonds Pvt. Ltd. The Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLT-02698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/delhi-diamonds-pvt-ltd-ia-5317-2022-in-ib-1117-nd-2020-aacbddd4

## Summary

### Background

The case pertains to the liquidation of M/s. Delhi Diamonds Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated, and Ms. Deepa Gupta was appointed as the Interim Resolution Professional (IRP). Public announcements were made, claims were verified, and a Committee of Creditors (CoC) was constituted. The Resolution Professional called for Expression of Interest (EoI) but no resolution plan was approved by the CoC. Subsequently, an application was filed for the liquidation of the Corporate Debtor, and Ms. Deepa Gupta was appointed as the Liquidator. The Liquidator took possession of the assets, explored the sale of the Corporate Debtor as a going concern, and conducted an e-auction. Mr. Gaurav H Kaladiya was declared the highest bidder and the sale

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Delhi Diamonds Pvt. Ltd. An order dated 03.05.2021 admitted the petition for initiating CIRP. Ms. Deepa Gupta was appointed as the Interim Resolution Professional (IRP). The IRP made public announcements inviting claims from creditors. The IRP verified the claims and constituted the Committee of Creditors (CoC). The Resolution Professional called for Expression of Interest (EoI) but received no viable resolution plan. The 180-day CIRP period was extended by 30 days. The CoC approved the liquidation of the Corporate Debtor. Application No. 5556/2022 was filed for liquidation, and Ms. Deepa Gupta was appointed as the Liquidator. The Liquidator issued public announcements and received claims.

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## Issues and analysis

### Issue 1: Whether the liquidation process of the Corporate Debtor should be closed as per Section 53 of the …

**Ratio:** The jurisdiction of the Adjudicating Authority (NCLT) and the Appellate Authority (NCLAT)

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**Reasoning:** The court considered that the liquidator had completed the sale of the Corporate Debtor

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**Interpretation:** The court interpreted Section 53 of the Insolvency & Bankruptcy Code, 2016,

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**Application:** The court applied the ratio and reasoning to the facts of the case, noting that

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** M/s. Kundan Mal…
- **Respondents:** M/s. Delhi…

## Timeline

- **2021-05-03 — CIRP Init…**: Petition for initiating CIRP…
- **2021-05-06 — Public Annou…**: Public announcement made in Business…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 53 — Distribution of assets](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-53)

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