# In the matter of Lily Jewellery Private Limited

> NCLT judgment dated 2025-08-25. Citation: TCN-2025-NCLT-01292. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Aug 2025
- **Citation:** TCN-2025-NCLT-01292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/lily-jewellery-private-limited-30e05973

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Lily Jewellery Private Limited.

## Facts

State Bank of India filed C.P. (IB) No.476/MB/2025 on 12.08.2024 under Section 7 of the IBC against Lily Jewellery Private Limited.

The applicant, State Bank of India, claimed a total default amount of Rs. 100,35,44,847.42/-.

The corporate debtor, Lily Jewellery Private Limited, was engaged in jewellery manufacturing and export business.

The account of the corporate debtor was declared NPA on 01.02.2014.

The date of default was mentioned as 29.07.2021, based on the Decree cum Recovery Certificate issued by DRT-I, Mumbai.

The applicant proposed the name of Mr. Mukesh Khathuria as the Interim Resolution Professional (IRP).

The Tribunal directed the applicant to deposit Rs. 3,00,000/- with the IRP to meet the initial CIRP costs.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** The Tribunal relied on the judgment of the Hon'ble Supreme Court in Dena Bank vs C.

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**Reasoning:** The Tribunal considered that the date of default was mentioned as 29.08.2021, which is 30

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**Interpretation:** The issuance of a Recovery Certificate gives rise to a fresh cause of action

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**Application:** The Tribunal held that the application filed by the applicant was maintainable

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** State Bank of…
- **Respondents:** Lily Jewellery…
- **Other parties:** Mukesh Kha…
- **Advocates:** Subir K…; Vaishnavi…; +1 more

## Timeline

- **12.08.2024 — Application…**: State Bank of India filed C.P. (IB)…
- **01.02.2014 — NPA Decla…**: The account of the corporate…

## 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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