# In the matter of Jaldhara Properties and Trading Pvt. Ltd. & Ors. vs. Sudal Industries Ltd. & Ors.

> NCLAT judgment dated 2024-07-22. Citation: TCN-2024-NCLAT-00309. Jaldhara Properties and Trading Pvt. Ltd. filed an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 22 Jul 2024
- **Citation:** TCN-2024-NCLAT-00309
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jaldhara-properties-and-trading-pvt-ltd-ors-vs-sudal-industries-ltd-ors-fc4b28ff

## Summary

### Background

Jaldhara Properties and Trading Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) as an unsecured financial creditor. While this application was pending, Sudal Industries Limited, the Corporate Debtor, initiated Pre-Packaged Insolvency Resolution Process (PPIRP) under Section 54(C) of the IBC. The Tribunal admitted the application under Section 54(C), overruling Jaldhara's objection based on Section 11A(4) of the IBC. Jaldhara challenged this decision, arguing that its prior Section 7 application should have been considered first. The Resolution Professional (RP) also filed an application for approval of the resolution plan, which was approved by the Tribunal.

## Facts

Jaldhara Properties and Trading Pvt. Ltd. (Appellant) filed a Section 7 application on 2020-12-09, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sudal Industries Limited (Corporate Debtor) for an amount of Rs. 9,63,75,010. While this application was pending, the Insolvency and Bankruptcy Code (IBC) was amended in 2021, introducing Section 11A. Subsequently, the Corporate Debtor filed an application under Section 54(C) of the IBC for Pre-Packaged Insolvency Resolution Process (PPIRP) on 2022-09-04. The Tribunal admitted the Section 54(C) application and initiated PPIRP, overruling the Appellant's objection based on Section 11A(4). The Appellant challenged this decision, arguing that its prior Section 7 application should have been considered

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## Issues and analysis

### Issue 1: Whether the application filed under Section 54(C) of the Code shall have the precedence/priority of …

**Ratio:** Section 11A(4) of the Insolvency and Bankruptcy Code (IBC) stipulates that the provisions

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**Reasoning:** The NCLAT reasoned that since the Section 7 application was filed on 2020-12-09, which is

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**Interpretation:** Section 11A(4) is interpreted to mean that if a Section 7, 9, or 10 application

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**Application:** In this case, the Section 7 application was filed before the effective date of

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Jaldhara Propertie…
- **Respondents:** Sudal Industries…; Sudal Industries…

## Timeline

- **2020-12-09 — Section 7 Application…**: Jaldhara Properties and Trading Pvt. Ltd. filed…
- **2021-04-04 — IBC Amendment Act, 2021…**: The Insolvency and Bankruptcy Code…

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