# In the matter of AVJ Developers (India) Pvt. Ltd. (IB)-1795(PB)-2018

> NCLT judgment dated 2019-01-21. Citation: TCN-2019-NCLT-05220. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 21 Jan 2019
- **Citation:** TCN-2019-NCLT-05220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avj-developers-india-pvt-ltd-ib-1795pb-2018-e070b3e2

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 against a corporate debtor. However, a similar petition against the same corporate debtor had already been admitted by a co-equal bench. The earlier order was issued on 20.12.2018. The current petition was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016.

## Facts

Madhulika Saraf & anr. filed a petition against AVJ Developers (India) Pvt. Ltd. under Section 7 of the Insolvency & Bankruptcy Code, 2016. A prior petition against AVJ Developers (India) Pvt. Ltd. under Section 9 of the IBC had already been admitted on 20.12.2018. Section 11 of the Code prevents initiating another CIRP against a corporate debtor already undergoing CIRP. The court noted the petitioners could file claims with the Insolvency Professional, Mr. Ashok Kumar Juneja. The Interim Resolution Professional has specific duties under Sections 15, 17, 18, 19, 20 & 21 of the Code. Personnel connected with the Corporate Debtor have a legal obligation under Section 19 to assist the IRP.

## Issues and analysis

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

**Ratio:** Section 11 of the Insolvency and Bankruptcy Code, 2016 prohibits the initiation of

…

**Reasoning:** The court reasoned that allowing multiple CIRPs against the same corporate debtor would

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**Interpretation:** Section 11 is interpreted strictly to prevent parallel insolvency proceedings

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**Application:** Since a CIRP had already been initiated against AVJ Developers (India) Pvt.

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** Madhulika…
- **Respondents:** AVJ Developers…

## Timeline

- **2018-12-20 — Previous…**: A co-equal bench admitted a petition under Section 9 of the Insolvency and Bankruptcy…
- **2019-01-21 — Order Del…**: The court dismissed the current petition under Section 7 of the Insolvency and Bankruptcy…

## 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)

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