In the matter of Indian Gem & Jewellery Imperial Private Limited

An application under section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 45 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations,2016. In thematter of: Indian Gem & Jewellery Imperial Private Limited, (CIN: U27205WB2006PTC111892); Represented byits Liquidator – Mr. SanjitKumar Nayak, ….Applicant/Liquidator

Dateof Hearing:19/05/2023 Date ofPronouncement: 20/07/2023 Coram: Smt. BidishaBanerjee :Member (Judicial) Shri BalrajJoshi :Member (Technical)

Appearances through hybrid mode: Forthe Applicant : Mr. Shaunak Mitra, Adv. Mr. Vikash Singh, Adv. Ms.Zeenat Shabab, Adv. Mr. SanjitKumar Nayak, Liquidator inperson

INTHENATIONALCOMPANYLAWTRIBUNAL SPECIALBENCH,(Court–I) KOLKATA IA(IBC)457(KB)2023 In CP(IB)/1365(KB)2019

OR DER Per:Bidisha Banerjee, Member (Judicial) 1. ThisAdjudicating Authority convened through hybrid mode.

2. IA(IBC)/457(KB)2023 is an application filed under section 54 of the Insolvency and Bankruptcy Code, 2016 (hereinafter called the “Code”) read with regulation 45 of the IBBI (Liquidation Process) Regulations, 2016 (hereinafter called the “Liquidation Process Regulations”) by the Liquidator of Indian Gem & Jewellery Imperial Private Limited, (CIN: U27205WB2006PTC111892) (hereinafter called the “Corporate Debtor”) praying for dissolution of the Corporate Debtor. This application is duly supported by an affidavit1 affirmed by Mr. SanjitKumar Nayak, Liquidator.

3. This Adjudicating Authority vide its order2 dated 13/11/2019 on a Petition filed by Vasu Publicity Private Limited. (Operational Creditor) under section 9 of the Code directed initiation of the Corporate Insolvency Resolution Process (hereinafter called the “CIRP”) against Indian Gem & Jewellery Imperial Private Limited (Corporate Debtor) appointing Mr. Ashok Kumar Agarwal, an Insolvency Professional as Interim Resolution Professional (hereinafter called the “IRP”). This Adjudicating Authority, on an application filed by the Committee of Creditors u/s. 22(3) of the Code, vide its order3 dated 25/02/2020 in IA(IB)109(KB)2020 had replaced Mr. Ashok Kumar Agarwal, IRP with Mr. Sanjit Kumar Nayak, an Insolvency Professional as Resolution Professional. Liquidation order4 was passed on 22/01/2021appointing theapplicant as theLiquidator.

4. As per regulation 41 of the IBBI (Liquidation Process) Regulations, 2016 (in short “Liquidation Process Regulations”), the Liquidator had duly opened a bank 1Atpages248and249oftheapplication 2Annexure“A”atpages31to39oftheapplication 3Annexure“A”atpages40to41oftheapplication 4Annexure“A-1”totheFinalReportatpages226to231oftheapplication

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INTHENATIONALCOMPANYLAWTRIBUNAL SPECIALBENCH,(Court–I) KOLKATA IA(IBC)457(KB)2023 In CP(IB)/1365(KB)2019 account being A/c. No. 7020234593 in the name of “Indian Gem and Jewellery Imperial Private Limited - in Liquidation”with Indian Bank, Elgin Road Branch, VishakhaApartment, 1stFloor, 2B, Sambhu Nath Pandit Street, Kolkata 700020.

5. In compliance of regulation 12 of Liquidation Process Regulations Public announcement5 of commencement of liquidation was made in Form – B in “Business Standard” (English) and “Aajkal” (Bengali) on 26/01/2021 calling upon stakeholders of theCorporate Debtorto submittheir proofof claims.

6. In response to public announcement, the Liquidator received claims from the stakeholders in respect of which claims amounting to Rs.58,28,96,824/- were admitted on the basis of proof of claims submitted and accepted by the Liquidator and duly submitted a report in compliance of regulation 31(2) of the Liquidation Process Regulations to this Adjudicating Authority. Copy of latest List of Stakeholders forms Annexure“C”6.

7. In accordance with the Code and as per terms of Liquidation Process Regulations, the Liquidator had prepared and submitted the Preliminary Report7 to this Adjudicating Authority including, asset memorandum, proposed plan ofactions etc. on 21/04/2021.

8. It is stated in the application that the Liquidator in compliance of the Code and Regulations had duly sent a letter to the RoC, Kolkata informing that the Corporate Debtor is undergoing liquidation, for updating the status of the Corporate Debtor in theMasterData8accordingly.

5Annexure–“B”atpages42to44oftheapplication 6Atpages45to51oftheapplication. 7Avermentsinpara5atpage18oftheapplication 8Avermentsinpara7atpage18 Annexure“D”atpage52oftheapplication

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INTHENATIONALCOMPANYLAWTRIBUNAL SPECIALBENCH,(Court–I) KOLKATA IA(IBC)457(KB)2023 In CP(IB)/1365(KB)2019

9. In terms of regulation 21A(1) of the Liquidation Process Regulations, Indian Bank, being the only secured creditor, informed the Liquidator of its decision to relinquishits security interest to theliquidationestate inForm C9.

10.In compliance of regulation 31A of the Liquidation Process Regulations, the Liquidator duly constituted Stakeholders Consultation Committee (“SCC”) and duly filed List of Stakeholders10 with this Adjudicating Authority. 1st SCC meetings was held on 01/06/2021. In the said 1st meeting of the SCC, members of the SCC had decided for sale of the Corporate Debtor as a going concern. Accordingly, a sale notice dated 18/06/2021 was published mentioning the date of e-auction as 18/07/2021. However, in the wake of COVID-19, no EMD was received.11

11.At the 2nd meeting of the SCC held on 19/07/2021, the Liquidator had informed to the members of the SCC that since the valuation reports submitted by the Valuers during CIRP period are nearly one year old, because of some changes in the market rate of Gold and Jewellery, it would be beneficial to have a fresh valuation of the Corporate Debtor as per regulation 35(2) of the Liquidation Process Regulations. After due deliberation the members of the SCC had agreed for the fresh valuation. Accordingly, IBBI Registered Valuers had submitted their valuations report as on Liquidation Commencement Date. Copyof all thevaluation report submitted bythe Valuers forms Annexure“E”12to theapplication.

12.Vide order dated 28/03/2022 in IA(IBC)/33(KB)2022, this Adjudicating Authority had granted extension of the liquidation period by 365 days subject to a cost of Rs.10,000/- to be payable by the Liquidator into the Liquidation account of the CorporateDebtor.

9Avermentsinpara8atpage18oftheapplication 10Annexure“C”atpages45to41oftheapplication 11Avermentsinpara10atpage19oftheapplication 12Atpages53to112oftheapplication

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INTHENATIONALCOMPANYLAWTRIBUNAL SPECIALBENCH,(Court–I) KOLKATA IA(IBC)457(KB)2023 In CP(IB)/1365(KB)2019

13.AltogethertheLiquidatorhad conducted 12thE-auctions as follows:

Sl.No. Date ofAuction Notice Reserve Price 01 22/07/2021 Rs.4,99,16,604/- 02 30/12/2021 Rs.5,27,00,000/- 03 28/02/2022 – Under Swiss Rs.1,71,71,172/- Challenge Method 04 04/04/2022 Rs.3,95,25,000/- 05 04/05/2022 Rs.2,68,65,000/- 06 31/05/2022 Rs.1,58,38,000/- 07 18/06/2022 Rs.1,42,55,000/- 08 01/07/2022 Rs.1,28,29,000/- 09 04/08/2022 Rs.1,15,50,000/- 10 30/08/2022 Rs.1,04,35,000/- 11 15/09/2022 Rs.93,91,000/- 12 07/01/2023 Rs.88,50,000/- Copies of all the 12 E-auction notices published by the Liquidator forms Annexure “F”13.

14.Upon conduction of e-auctions successfully, the Liquidator had issued sale certificates to the successful bidders. Details of successful sale of assets are set out below:

No. of E-Aucation Name of the Nature of assets Amountrealised Successfully held: successful bidder sold (excludingGST) (Rs) 2ndE-aucation Skyhigh Inc Innova Car 8,31,000 dated 22/07/2021 4thE-auction StarBrillian 14& 18Kt 97,55,000 dated 04/04/2022 Gold Jewellery 5thE-auction StarBrillion 20/22 & 24 Gold 1,11,89,000 Dated 04/05/2022 Jewellelry & Raw Gold 9thE-auction Akash Enterprise Furniture/Jewellery 34,000 Dated 04/08/2022 Making Mmachine 11thE-auction Balaji Minerals SilverJewellery/ 14,64,000 Dated 15/09/2022 RawSilver, Imitation,Precious 13Atpages113to142oftheapplication

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INTHENATIONALCOMPANYLAWTRIBUNAL SPECIALBENCH,(Court–I) KOLKATA IA(IBC)457(KB)2023 In CP(IB)/1365(KB)2019

Stone, etc 11thE-auction StarBrillion LooseDiamond 79,57,000 Dated 15/09/2022 Total 3,12,30,000 Copy of Sale Certificates issued by the Liquidator to the successful bidder forms Annexure“G”14.

15.At the 18th SCC meeting held on 17/01/2023 and adjourned to 03/02/2023, the Liquidator had apprised the members of the SCC with regard to the investment made by the Corporate Debtor in equity shares as well as Security Deposit and payment of Advance Tax with the Authorities of the Corporate Debtor, for which the Liquidator had made several efforts for recovery of such security deposit and advance tax. The SCC members upon deliberation on the possibility of sale of the Investment had expressed that there are remote chances of any buyer of such Investment. The Liquidator had also explained to the members of the SCC provision of regulation 38 of Liquidation Process Regulations, 2016 regarding distribution of unsold assets. Thus, the Indian Bank, secured financial creditor and stakeholder has expressed that there is no buyer of the said Investment and chances ofsaleofthe Investment is remote.15

16.The Liquidator out of the total sale proceeds during the Liquidation Process had madedistributionin accordance withthe provisionof section 53oftheCode16.

17.IA(IBC)/1377(KB)2022 filed u/s. 43 and 66 of the Code against the suspended members of the Board of Directors of the Corporate Debtor, which is pending for consideration before this Adjudicating Authority. The Indian Bank, secured financial creditor and member of the SCC, has agreed to pursue the aforesaid

14Atpages143to167oftheapplication 15Avermentsinpara22atpage23oftheapplication 16Avermentsinpara23atpages23to27oftheapplication

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INTHENATIONALCOMPANYLAWTRIBUNAL SPECIALBENCH,(Court–I) KOLKATA IA(IBC)457(KB)2023 In CP(IB)/1365(KB)2019 proceedings in respect of avoidance transactions and the proceeds, if any, shall be distributedin accordance withsection 53oftheCode.17

18.In compliance of regulation 15 of the Liquidation Process Regulations, the Liquidator had filed eight periodical progress reports from time to time before this Adjudicating Authority.18

19.In compliance of section 35(2) of the Code read with regulation 8 of the Liquidation Process Regulations, the Liquidator hold Nineteenth SCC meeting altogether.19 Copies of minutes along with voting results were annexed to the application and forms Annexure “H”20

20.In compliance of regulation 45 of the Liquidation Process Regulations, the Liquidator has filed the Final Report along with audited receipts and payments and bank statement of the liquidation account, which forms Annexure “I”21 Final Report along with audited receipts and payments and bank statement of the liquidationaccount has also been forwarded to IBBI videe-mail dated 15/02/202322.

21.As per regulation 45(3) of the Liquidation Process Regulation, the Liquidation has submitted Form H, which forms Annexure “J”23.

22.In compliance of the order dated 11/05/2023, the Liquidator has filed Supplementary Affidavit affirmed on 15/05/2023 annexing Bank Closure Certificate dated 12/05/2023 issued by the Indian Bank, Elgin Road Branch certifying that the Account No. 7020234593 in the name of Indian Gem and Jewellery Imperial Pvt. Ltd. (In Liquidation) stands closed on 12/05/2023 along

17Avermentsinpara24atpages27&AnnexureHatpage174oftheapplication 18Avermentsinpara25atpages27oftheapplication 19Avermentsinpara26atpages28oftheapplication 20Atpages168to202oftheapplication 21Atpages203to238oftheapplication 22Atpage247oftheapplication 23Atpages239to246oftheapplication

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INTHENATIONALCOMPANYLAWTRIBUNAL SPECIALBENCH,(Court–I) KOLKATA IA(IBC)457(KB)2023 In CP(IB)/1365(KB)2019 with Statement of Account from 13/05/2021 to 10/02/2023 showing “Zero” balance.24

23.The affairs of the Corporate Debtor were completely liquidated after realising the assets and distributing the amount to the stakeholders after complying with the provisions of section 53 of the Code in the order of priority as mandated under the Code. The Liquidation Account in terms of regulation 45(1) of the Liquidation Process Regulations and details thereof have been attached along with Bank Statementshowing “zero”balance in theliquidationaccount.

24.Upon hearing the Ld. Counsel appearing for the Liquidator and perusing the documents annexed to the application, it appears that affairs of the Corporate Debtor have been completely wound up and its assets have been completely liquidated.The bankaccount has also been closed.

25.Since, the Indian Bank, sole Secured Financial Creditor and Member of the SCC has agreed to pursue the IA(IBC)/1377(KB)2022 filed u/s. 43 and 66 of the Code25 against the suspended members of the Board of Directors of the Corporate Debtor which is pending consideration before this Adjudicating Authority, in view of the facts and circumstances stated above, there is no impediment to the Corporate Debtor being dissolved, and it is ordered accordingly. However, keeping in view of thependency ofIA(IBC)/1377(KB)2020, themain C.P. shallnot be disposed of.

26.The Liquidator is further directed toserve a copy of this order upon theRegistrar of Companies, West Bengal, immediately and, in any case, within fourteen days of receipt of this order. The Registrar of Companies shall take further necessary action upon receiptof acopy of thisorder.

24Annexure“A”atpages4to15oftheSupplementaryAffidavitaffirmedon15/05/2023 25Annexure“H”item4oftheMinutesof18thSCCMeetingatpage174oftheapplication

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INTHENATIONALCOMPANYLAWTRIBUNAL SPECIALBENCH,(Court–I) KOLKATA IA(IBC)457(KB)2023 In CP(IB)/1365(KB)2019

27.The Liquidator shall stand discharged from his responsibilities, subject to all procedural compliances.

28.IA(IBC)457(KB)2023 in CP(IB)/1365(KB)2019 is allowed with the above directions andis accordingly disposedof.

29.CP(IB)/1365(KB)2019 along with IA(IBC)/1377(KB)2020 is already posted on 20/07/2023.

30.The Registry is directed to send e-mail copies of the order forthwith to all the parties and theirLd. Counsel forinformation and fortaking necessary steps.

31.Certified copy of this order may be issued, if applied for, upon compliance of all requisiteformalities.

(BalrajJoshi) (BidishaBanerjee) Member (Technical) Member (Judicial)

Signed onthis,the20th day ofJuly, 2023.

hb.

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