# In the matter of Innoventive Industries Limited Vs. Kumar Motors Private Limited CA(AT) 181-2017

> NCLAT judgment dated 2018-02-09. Citation: TCN-2018-NCLAT-00377. Innoventive Industries Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLAT
- **Order date:** 9 Feb 2018
- **Citation:** TCN-2018-NCLAT-00377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/innoventive-industries-limited-vs-kumar-motors-private-limited-ca-ceb7e036

## Summary

### Background

Innoventive Industries Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against Kumar Motors Private Limited, alleging default in repayment of Rs. 24,06,52,849.50/- along with interest. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, rejected the application due to the pendency of winding-up proceedings against Kumar Motors Private Limited and left open the question of whether the application was barred by limitation or Section 11(a) of the I&B Code or due to the pendency of arbitration proceedings. This appeal was filed against that rejection.

## Facts

Innoventive Industries Limited (Appellant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) to initiate Corporate Insolvency Resolution Process (CIRP) against Kumar Motors Private Limited (Respondent/Corporate Debtor) due to a default of Rs. 24,06,52,849.50/- plus interest. The Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) rejected the application because winding-up proceedings were already pending against the Corporate Debtor. A Company Petition No. 468 of 2013 had been preferred by Innoventive Industries Limited for winding up of Kumar Motors Private Limited before the Hon'ble High Court of Judicature at Bombay, which passed a detailed order on 4th August, 2015, admitting the company petition. The

…

## Issues and analysis

### Issue 1: Whether an application under Section 7 of the ‘I&B Code' can be rejected on the ground of …

**Ratio:** Section 238 of the I&B Code provides that the provisions of the I&B Code shall

…

**Reasoning:** The court reasoned that if a winding-up order has already been passed by the High Court

…

**Interpretation:** The interpretation hinges on whether the I&B Code's overriding effect

…

**Application:** In this case, the High Court had already admitted the winding-up proceedings

…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Innoventive…
- **Respondents:** Kumar Motors…
- **Advocates:** Mish…; Siddhant…; +2 more

## Timeline

- **2013-01-01 — Company Petiti…**: Innoventive Industries Limited filed Company Petition No. 468 of 2013 for winding up of…
- **2015-08-04 — High Court…**: The Hon'ble Bombay High Court passed a detailed order admitting the company petition for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/innoventive-industries-limited-vs-kumar-motors-private-limited-ca-ceb7e036