# In the matter of Goenka Diamond and Jewels Limited

> NCLT judgment dated 2025-12-02. Citation: TCN-2025-NCLT-01812. The case involves an application for approval of a resolution plan submitted by Shri Navneet…

- **Court:** NCLT
- **Order date:** 2 Dec 2025
- **Citation:** TCN-2025-NCLT-01812
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/goenka-diamond-and-jewels-limited-3c54ec2d

## Summary

### Background

The case involves an application for approval of a resolution plan submitted by Shri Navneet Goenka for Goenka Diamond and Jewels Limited, which was approved by the Committee of Creditors (CoC) with 86.56% majority.

## Facts

The Resolution Plan was approved by the CoC with 86.56% majority.

Union Bank of India, a dissenting financial creditor, raised objections to the Resolution Plan.

The objections primarily concerned the extinguishment of third-party security interests and guarantees.

The Resolution Professional submitted the Resolution Plan for approval under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016.

The Corporate Debtor is Goenka Diamond and Jewels Limited.

The Adjudicating Authority found the Resolution Plan to be in violation of Section 32A of the Code.

The Adjudicating Authority found the Resolution Plan to be in contravention of Regulation 38 (3)(e) of the CIRP Regulations and the proviso to Section 31 of the Code.

…

## Issues and analysis

### Issue 1: Whether Resolution Plan providing for extinguishment of third-party security interests and …

**Ratio:** The Resolution Plan cannot extinguish the securities of unrelated parties and grant

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**Reasoning:** The extinguishment of guarantees and securities of unrelated parties to the Corporate

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**Interpretation:** The Code was not intended to be a tool in the arsenal of the suspended

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**Application:** The Adjudicating Authority held that the Resolution Plan is in violation of

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## Parties

- **Judges:** Reeta K…; Kavita Bha…
- **Appellants:** Union Bank of…
- **Respondents:** Goenka Diamond…; Sourabh M…; +2 more
- **Other parties:** Bhawna G…; Nitin G…; +2 more
- **Advocates:** Akarsh M…; Varun S…; +8 more

## Timeline

- **09.12.2022 — Order Da…**: The Company Petition was admitted…
- **12.04.2023 — Order Da…**: Mr. Sourabh Malpani was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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