# In the matter of Navin Chandra Mishra vs. Nand Kishore Palaha & Ors.

> NCLAT judgment dated 2024-09-27. Citation: TCN-2024-NCLAT-00174. This is an appeal against an order dated 09.09.2024 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 27 Sept 2024
- **Citation:** TCN-2024-NCLAT-00174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/navin-chandra-mishra-vs-nand-kishore-palaha-ors-682ca17e

## Summary

### Background

This is an appeal against an order dated 09.09.2024 passed by the National Company Law Tribunal (NCLT), Ahmedabad, Division Bench, Court I, which admitted a Section 7 application filed by the Financial Creditor. The Financial Creditor had initially filed a winding up petition, Company Petition 470/2016, which was transferred to the NCLT and registered as TP/3(AHM)/2023. The Adjudicating Authority heard the parties and admitted the Section 7 application.

## Facts

The Financial Creditor initially filed a winding up petition (Company Petition 470/2016) which was later transferred to the NCLT and registered as TP/3(AHM)/2023. Subsequently, the Financial Creditor filed a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority (NCLT, Ahmedabad) admitted the Section 7 application, finding that the debt and default were proved. The Corporate Debtor had committed a default exceeding Rs. 1 Lakh. The Corporate Debtor argued that a pending Civil Suit No. 193/2017 should prevent the admission of the Section 7 application. The Appellant contended that the dispute was pending in the Civil Suit. The Adjudicating Authority considered the pending Civil Suit but held that it was not a reason to reject the

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## Issues and analysis

### Issue 1: Whether the pendency of a civil suit filed by the Corporate Debtor is a valid reason to reject a …

**Ratio:** The pendency of a civil suit does not automatically bar the admission of a Section 7

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**Reasoning:** The Adjudicating Authority and the NCLAT both considered the pending Civil Suit filed by

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**Interpretation:** This interpretation clarifies that the existence of a parallel civil proceeding

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**Application:** In this case, the Corporate Debtor's pending Civil Suit was not deemed

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Navin Chandra…
- **Respondents:** CMR Lifesciences…; Nand Kishore…

## Timeline

- **2016-01-01 — Winding Up Petition…**: The Financial Creditor initially filed a…
- **2023-01-01 — Case Regi…**: The winding up petition was transferred to…

## 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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