# In the matter of Dev Polyplast Pvt.  Ltd. (IB)-380(PB)-2019

> NCLT judgment dated 2019-03-01. Citation: TCN-2019-NCLT-04625. The case involves a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 1 Mar 2019
- **Citation:** TCN-2019-NCLT-04625
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dev-polyplast-pvt-ltd-ib-380pb-2019-da690145

## Summary

### Background

The case involves a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against a corporate debtor. However, another Corporate Insolvency Resolution Process (CIRP) had already been initiated against the same corporate debtor, namely Reliance Commercial Finance Limited v. Dev Polyplast Private Limited, vide order dated 26.02.2019. Section 11 of the Code, 2016, prohibits the initiation of another CIRP against a corporate debtor already undergoing one.

## Facts

M/s. BS Global filed a petition against Dev Polyplast Pvt. Ltd. under Section 9 of the IBC, 2016. However, Reliance Commercial Finance Limited had already initiated a CIRP against Dev Polyplast Private Limited, and the petition was admitted on 26.02.2019. Section 11 of the IBC, 2016, prohibits the initiation of another CIRP against a corporate debtor already undergoing one. The Insolvency Professional for the ongoing CIRP is Mr. Shailendra Singh. The current petition was therefore rendered infructuous.

## Issues and analysis

### Issue 1: Whether another 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

…

**Interpretation:** Section 11 is interpreted to mean that once a CIRP has been initiated and

…

**Application:** In this case, since Reliance Commercial Finance Limited had already initiated a

…

## Parties

- **Judges:** DEEPTI M…; SH. S.K MOH…
- **Appellants:** M/s. BS G…
- **Respondents:** Dev Polyplast…; Dev Polyplast…

## Timeline

- **2019-02-26 — CIRP Init…**: Reliance Commercial Finance Limited initiated a Corporate Insolvency Resolution Process…
- **2016-01-01 — Enactment…**: The Insolvency and Bankruptcy…

## 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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