# Indu Jain (Sole Proprietor of M/s. IB Jewels) vs. Birla Jewels Ltd.

> NCLT judgment dated 2026-10-06. Citation: TCN-2026-NCLT-01110. Indu Jain, as the sole proprietor of M/s. IB Jewels (Operational Creditor), filed an…

- **Court:** NCLT
- **Order date:** 6 Oct 2026
- **Citation:** TCN-2026-NCLT-01110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/birla-jewels-limited-0yo8i

## Summary

### Background

Indu Jain, as the sole proprietor of M/s. IB Jewels (Operational Creditor), filed an application under Section 9 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Birla Jewels Ltd. (Corporate Debtor) for an unpaid operational debt of Rs. 49,81,921/- arising from three invoices for the supply of diamond jewellery. The Corporate Debtor disputed the claim, alleging non-delivery of goods, forged invoices, and a pre-existing dispute under a separate Franchise Agreement with Brij Ratnam, another proprietorship of Indu Jain. The NCLT initially rejected the petition, but the NCLAT set aside this order and remanded the matter for fresh consideration, a decision subsequently affirmed by the Supreme Court.

## Facts

C.P. (IB) No. 3626 of 2019 (Application) was filed on 14.10.2019 by Ms. Indu Jain, Sole proprietor of M/s. IB Jewels, the Operational Creditor (OC).

The application sought initiation of Corporate Insolvency Resolution Process (CIRP) against Birla Jewels Limited, the Corporate Debtor (CD), under Section 9 of the IBC, 2016.

The amount claimed to be in default is Rs. 49,81,921/-.

The default amount is against three invoices: No. 017 (Rs. 26,52,781/- due 15.08.2019), No. 018 (Rs. 11,81,272/- due 19.08.2019), and No. 019 (Rs. 11,47,868/- due 19.08.2019).

The dates of default for the three invoices are 16.08.2019, 20.08.2019, and 20.08.2019, respectively.

The OC, Indu Jain, is the sole proprietor of IB Jewels, engaged in the wholesale trade of diamond jewellery.

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## Issues and analysis

### Issue 1: Whether the 3 invoices represent an independent operational debt arising from supply of goods by IB …

**Ratio:** The supply of raw/uncut diamond jewellery by IB Jewels was distinct from the franchise

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**Reasoning:** The Hon'ble NCLAT specifically examined the nature of these transactions and held that

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**Interpretation:** Separate proprietorship concerns, even if owned by the same individual, can

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**Application:** The three invoices relate to an independent commercial transaction between IB

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Indu Jain (Sole…
- **Respondents:** Birla Jewel…
- **Other parties:** Nikita Rat…; Pravin R. N…
- **Advocates:** Gopal Mac…; Krusha Mahe…; +5 more

## Timeline

- **2018-12-05 — Franchisee Ag…**: Franchisee Agreement executed between…
- **2019-06-16 — Invoice N…**: Invoice No. 017 dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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