# In the matter of CLC Industries Ltd. (IB)-2749(PB)-2019

> NCLT judgment dated 2020-01-08. Citation: TCN-2020-NCLT-02424. A petition was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, against CLC…

- **Court:** NCLT
- **Order date:** 8 Jan 2020
- **Citation:** TCN-2020-NCLT-02424
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/clc-industries-ltd-ib-2749pb-2019-1b824d9c

## Summary

### Background

A petition was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, against CLC Industries Ltd. However, a Corporate Insolvency Resolution Process (CIRP) had already been initiated against the same corporate debtor based on a Section 7 petition.

## Facts

A petition was filed by Ranjan Magtani against CLC Industries Ltd. under Section 9 of the Insolvency & Bankruptcy Code, 2016. This petition sought to initiate a Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. However, it was brought to the attention of the National Company Law Tribunal (NCLT) that a separate petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, had already been admitted against the same corporate debtor, CLC Industries Ltd. This earlier petition was filed by Edelweiss Asset Reconstruction Company Limited and was admitted via an order dated January 3, 2020. Given that a CIRP was already in progress for CLC Industries Ltd., the NCLT referred to Section 11 of the Insolvency and Bankruptcy Code,

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## Issues and analysis

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

**Ratio:** A corporate debtor already undergoing a Corporate Insolvency Resolution Process cannot

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**Reasoning:** The Tribunal referred to Section 11 of the Insolvency and Bankruptcy Code, 2016, which

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**Interpretation:** Section 11 of the Code acts as a bar to multiple concurrent insolvency

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**Application:** Since CLC Industries Ltd. was already subject to a CIRP initiated by Edelweiss

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## Parties

- **Judges:** DEEPTI M…; S. K. MOH…
- **Appellants:** Ranjan Ma…
- **Respondents:** CLC Industries…
- **Advocates:** for the pet…; For the Respondent…

## Timeline

- **January 3, 2020 — CIRP Admi…**: A petition under Section 7 of the IBC was admitted against CLC Industries Ltd. in the…
- **January 8, 2020 — Petition Di…**: The NCLT dismissed the Section 9 petition filed by Ranjan Magtani against CLC Industries…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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