# In the matter of DRD Gems LLP

> NCLT judgment dated 2024-02-07. Citation: TCN-2024-NCLT-02721. The case pertains to an application filed by the Resolution Professional, Hirachand Nemichand…

- **Court:** NCLT
- **Order date:** 7 Feb 2024
- **Citation:** TCN-2024-NCLT-02721
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/drd-gems-llp-5770817e

## Summary

### Background

The case pertains to an application filed by the Resolution Professional, Hirachand Nemichand Bafna, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking an order for the liquidation of the Corporate Debtor, DRD Gems LLP. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 06.12.2022, following a petition filed by an Operational Creditor under Section 9 of the Code. The applicant was appointed as the Interim Resolution Professional (IRP). Public announcements were made to intimate the commencement of CIRP and to invite creditors to submit their claims. The applicant certified the non-constitution of the Committee of Creditors (CoC) due to the lack of claims received within the stipulated time. The

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## Facts

The Resolution Professional, Hirachand Nemichand Bafna, filed an application for the liquidation of DRD Gems LLP under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated on 06.12.2022 following a petition by an Operational Creditor. Public announcements were made, but no claims were received from creditors, leading to the non-constitution of the CoC. The applicant filed interlocutory applications for directions and addressing non-cooperation. A claim was received from Trau Bros, N.V., resulting in a single-member CoC. The CoC determined that the Corporate Debtor had no fixed assets or business operations since the Financial Year 2020-21. The applicant appointed a Government Approved Valuer, who valued the Rough Diamonds worth INR

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(2) of the …

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

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**Reasoning:** The CoC, with 100% voting rights, approved the liquidation of the Corporate Debtor due to

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**Interpretation:** Section 33(2) provides the legal basis for the CoC to decide on the liquidation

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor was based on

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Hirachand…
- **Respondents:** DRD Gem…; Trau Bros…
- **Advocates:** Sankalp An…

## Timeline

- **2022-12-06 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Corporate Debtor in…
- **2022-12-10 — Public Annou…**: Applicant made a public announcement intimating the commencement of CIRP against the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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