# In the matter of Compact Lamps Pvt. Ltd. (IB)-1099(PB)-2018

> NCLT judgment dated 2019-02-11. Citation: TCN-2019-NCLT-04914. American Exports Banking Corp filed a petition against Compact Lamps Pvt. Ltd. under Section 7…

- **Court:** NCLT
- **Order date:** 11 Feb 2019
- **Citation:** TCN-2019-NCLT-04914
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/compact-lamps-pvt-ltd-ib-1099pb-2018-00ba80a1

## Summary

### Background

American Exports Banking Corp filed a petition against Compact Lamps Pvt. Ltd. under Section 7 of the Insolvency & Bankruptcy Code, 2016. However, a petition against the same corporate debtor under Section 9 of the IBC, 2016, filed by Captain Offset Printers, had already been admitted vide order dated 11.01.2019. The court noted that another Corporate Insolvency Process cannot be initiated against a corporate debtor already undergoing such a process.

## Facts

American Exports Banking Corp filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 against Compact Lamps Pvt. Ltd. A prior petition under Section 9 of the same code had already been admitted against Compact Lamps Pvt. Ltd. by Captain Offset Printers on 11.01.2019. Section 11 of the Code states that another Corporate Insolvency Process cannot be initiated against a corporate debtor already undergoing such a process. The petitioner would be entitled to file their claim before the Insolvency Professional, Ms. Deepika Bhugra Prasad.

## Issues and analysis

### Issue 1: Whether a fresh insolvency petition can be initiated against a corporate debtor when an existing …

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

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**Reasoning:** The court reasoned that allowing multiple insolvency proceedings against the same

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**Interpretation:** Section 11 is interpreted to mean that once a corporate insolvency resolution

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**Application:** In this case, since a petition under Section 9 had already been admitted

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** American Exports…
- **Respondents:** Compact Lamps…
- **Advocates:** Harsh…; Akshay…

## Timeline

- **2019-01-11 — Prior Or…**: Order passed admitting a petition under Section 9 of the IBC against Compact Lamps Pvt.…
- **2019-02-11 — Order Dismissing…**: The court dismissed the petition filed by American Exports Banking Corp under Section 7…

## 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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