# In the matter of Greendiamz Biotech Ltd. IA No.878 of 2020 in CP (IB) 17 of 2019

> NCLT judgment dated 2022-06-28. Citation: TCN-2022-NCLT-02010. The case pertains to an application filed by the Resolution Professional (RP) of Greendiamz…

- **Court:** NCLT
- **Order date:** 28 Jun 2022
- **Citation:** TCN-2022-NCLT-02010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/greendiamz-biotech-ltd-ia-no878-of-2020-in-cp-ib-17-of-2019-603756ec

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) of Greendiamz Biotech Ltd. under Section 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by the Financial Creditor, Union Bank of India, under Section 7 of the IBC, 2016. The Adjudicating Authority admitted the application on 27.05.2020. Subsequently, Chandra Prakash Jain was appointed as the Interim Resolution Professional (IRP) and later re-appointed as the Resolution Professional (RP). A public announcement was made to invite claims from creditors, and the IRP received claims from the Financial Creditor and three Operational Creditors.

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## Facts

The Resolution Professional (RP), Chandra Prakash Jain, filed an application for the liquidation of Greendiamz Biotech Ltd. under Sections 33(1), 33(2), and 34(1) of the IBC, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated based on an application by Union Bank of India, the Financial Creditor, under Section 7 of the IBC, 2016, which was admitted on 27.05.2020. Chandra Prakash Jain was appointed as the Interim Resolution Professional (IRP) and later as the RP. A public announcement was made, and claims were received from Union Bank of India and three Operational Creditors. The Committee of Creditors (CoC) consisted solely of Union Bank of India. Two resolution plans were submitted by Mr. Prakash Jalan and Mr. Prakash Ghewarchand Jain, but the CoC

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Greendiamz Biotech Ltd., should be …

**Ratio:** Section 33(1) of the IBC allows for the initiation of liquidation proceedings when the

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**Reasoning:** The Committee of Creditors (CoC), consisting solely of Union Bank of India, rejected both

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**Interpretation:** The IBC provides a mechanism for liquidation when resolution efforts fail. The

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**Application:** Since the CoC rejected both resolution plans, the conditions for liquidation

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Chandra Prakash…
- **Respondents:** Greendiamz…

## Timeline

- **2020-05-27 — Admission of Ap…**: The Adjudicating Authority admitted the application filed by Union Bank of India under…
- **2020-06-03 — Public Annou…**: A public announcement was published in Business Standard Newspaper (English) and Gujarat…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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