# In the matter of Delhi Control Devices Private Limited (IB)-55(PB)-2019

> NCLT judgment dated 2019-02-15. Citation: TCN-2019-NCLT-04829. L&T Finance Limited filed a petition as a Financial Creditor against Delhi Control Devices…

- **Court:** NCLT
- **Order date:** 15 Feb 2019
- **Citation:** TCN-2019-NCLT-04829
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/delhi-control-devices-private-limited-ib-55pb-2019-04d6d43a

## Summary

### Background

L&T Finance Limited filed a petition as a Financial Creditor against Delhi Control Devices Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. Another petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 namely M/s. National Products v. M/s. Delhi Control Devices Private Limited, [(IB)-1567(PB)/2018] vide order dated 15.02.2019 pronounced today.

## Facts

L&T Finance Limited filed a petition against Delhi Control Devices Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Simultaneously, another petition under Section 9 of the same code was filed by M/s. National Products against Delhi Control Devices Private Limited. The court noted that Delhi Control Devices Private Limited was already undergoing a corporate insolvency resolution process due to the admission of the petition by M/s. National Products. Section 11 of the Code prevents the initiation of another insolvency process against a corporate debtor already undergoing such a process. The court allowed L&T Finance Limited to file its claim with the Insolvency Professional.

## Issues and analysis

### Issue 1: Whether another Corporate Insolvency Process can be initiated against a corporate debtor that is …

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

…

**Reasoning:** The court reasoned that initiating another insolvency process would be redundant and

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**Interpretation:** Section 11 is interpreted to mean that once a corporate debtor is undergoing a

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**Application:** Since Delhi Control Devices Private Limited was already undergoing a corporate

…

## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** L&T Finance…
- **Respondents:** Delhi Control…
- **Advocates:** Anandita…; Faiz R…

## Timeline

- **2019-02-15 — Order Del…**: Order delivered on 15.02.2019 regarding the petition filed by L&T Finance Limited against…
- **2018-01-01 — Petition Filed by…**: M/s. National Products filed a petition against Delhi Control Devices Private Limited…

## 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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