# In the matter of GE Godavari Engineering Limited CP (IB) No. 571-9-HDB-2018

> NCLT judgment dated 2019-03-12. Citation: TCN-2019-NCLT-04469. Krystal Steel Manufacturing Private Limited filed an application to initiate the corporate…

- **Court:** NCLT
- **Order date:** 12 Mar 2019
- **Citation:** TCN-2019-NCLT-04469
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ge-godavari-engineering-limited-cp-ib-no-571-9-hdb-2018-9c98e615

## Summary

### Background

Krystal Steel Manufacturing Private Limited filed an application to initiate the corporate insolvency resolution process (CIRP) against GE Godavari Engineering Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The counsel for the operational creditor stated that CIRP had already started against the corporate debtor in another case, and a moratorium order was passed against it. The counsel requested the Tribunal to close the matter.

## Facts

Krystal Steel Manufacturing Private Limited, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against GE Godavari Engineering Limited, the corporate debtor. During the proceedings, it was brought to the Tribunal's notice that CIRP had already commenced against the corporate debtor in another case, and a moratorium order was in place. The operational creditor's counsel acknowledged this and requested the Tribunal to close the matter, as they could not proceed against the corporate debtor due to the existing CIRP. The key fact is the existence of a prior CIRP and moratorium order against the corporate debtor, which rendered the current application infructuous.

## Issues and analysis

### Issue 1: Whether the application for initiating CIRP against the corporate debtor should be closed given …

**Ratio:** When CIRP has already commenced against a corporate debtor in another case and a

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**Reasoning:** The Tribunal reasoned that since CIRP had already been initiated against the corporate

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**Interpretation:** This interpretation aligns with the objective of the IBC to provide a

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**Application:** In this case, the Tribunal applied the ratio by closing the application filed

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Krystal Steel…
- **Respondents:** GE Godavari…
- **Advocates:** MS-Mono R…; Y.Surya Na…

## Timeline

- **2018-01-01 — Company Petiti…**: CP(IB) No.571/9/HDB/2018…
- **2019-03-12 — Hearing…**: Hearing held on…

## 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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