Gitanjali Gems

No resolution plan and no prospect of one: the assets were seized/attached by the Directorate of Enforcement under PMLA, 2002, the company had no running business, and CBI/ED investigations into an alleged fraud were ongoing, so no Form G was ever issued. The CoC rejected an extension of the CIRP period (54.14% on 02.04.2019) and instead resolved to liquidate at its 06th meeting on 05.04.2019 by 90.16%. The resolution is reproduced at para 10 (p.5-6): "The members were of the view that there was little possibility of getting a Resolution Plan or a Resolution Applicant to take over this Company as the Company does not have running business, all the assets of the Company are seized/attached by various governmental agencies such as Enforcement Directorate, the Company has been involved in a huge fraud, various agencies are investigating its affairs, and a number of cases are pending against it. Therefore, it may not be appropriate to the approach the Hon'ble NCLT for extension in the CIRP period. The CoC also discussed the issues relating to assets monetization, in the wake of attachment over assets and expressed their views in favour liquidation instead of seeking extension. Accordingly, the CoC authorized the Resolution Professional to file a suitable application/intimation with the Hon'ble NCLT for permitting liquidation of the Company."

From the bench, verbatim

"On perusal of records, it is evident that the assets of the Corporate Debtor were under attachment by the Directorate of Enforcement under the provisions of the PMLA, 2002 and considering the bleak chances of insolvency resolution amid the ongoing investigations and attachment of assets, the CoC had resolved in its 06th Meeting held on 05th April, 2019 to liquidate the Corporate Debtor by a majority of 90.16% voting in favour." (p.6) | "The Hon'ble Supreme Court in the matter of K. Sashidhar Versus Indian Overseas Bank & Ors (Neutral Citation: 2019 INSC 148, Vide Judgment dated February 05, 2019 in Civil Appeal No. 10673 of 2018) has held that the decisions of CoC based on its commercial wisdom are non-justiciable." (p.7) | "This Tribunal has very limited powers of judicial review in such matters of commercial wisdom." (p.8)