# In the matter of Amrapali Infrastructure Pvt. Ltd. (IB) -184 (PB)-2017

> NCLT judgment dated 2017-09-25. Citation: TCN-2017-NCLT-00362. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Magma…

- **Court:** NCLT
- **Order date:** 25 Sept 2017
- **Citation:** TCN-2017-NCLT-00362
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amrapali-infrastructure-pvt-ltd-ib-184-pb-2017-09d6e930

## Summary

### Background

The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Magma Fincorp Ltd., claiming to be a 'Financial Creditor' with a 'financial debt' of Rs. 1,11,50,922/- against Amrapali Infrastructure Pvt. Ltd. The petitioner asserted that the amount was recoverable as per their books of accounts and was in default.

## Facts

Magma Fincorp Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming to be a financial creditor of Amrapali Infrastructure Pvt. Ltd. The claimed financial debt amounted to Rs. 1,11,50,922/-, which Magma Fincorp asserted was recoverable and in default. However, the NCLT noted that another insolvency petition filed by Bank of Baroda against Amrapali Infrastructure Private Limited had already been admitted. The court considered the fact that a second insolvency process cannot be initiated against a corporate debtor already undergoing a corporate insolvency resolution process.

## Issues and analysis

### Issue 1: Whether a fresh Corporate Insolvency Resolution Process can be initiated against a Corporate Debtor …

**Ratio:** A second Corporate Insolvency Process cannot be initiated against a corporate debtor

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**Reasoning:** The court reasoned that initiating another CIRP against a corporate debtor already

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**Interpretation:** The interpretation is based on the principle that parallel insolvency

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**Application:** The court applied the ratio to the facts of the case, noting that Bank of

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** M/s. Magma…
- **Respondents:** M/s. Amrapali…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2017-09-25 — Judgment De…**: Judgment delivered by the NCLT, disposing of…

## 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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