# In the matter of Jai Sai Steel Pvt. Ltd. Company Petition No. (IB)-661(ND)-2020

> NCLT judgment dated 2021-09-10. Citation: TCN-2021-NCLT-01137. M/s B.B. Steels Pvt. Ltd., through its Director Mr. P.K. Gupta, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 10 Sept 2021
- **Citation:** TCN-2021-NCLT-01137
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jai-sai-steel-pvt-ltd-company-petition-no-ib-661nd-2020-62cc966d

## Summary

### Background

M/s B.B. Steels Pvt. Ltd., through its Director Mr. P.K. Gupta, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Jai Sai Ram Steel Pvt. Ltd. The petition was filed due to an alleged default in payment by the Corporate Debtor to the Operational Creditor.

## Facts

M/s B.B. Steels Pvt. Ltd., acting as the Operational Creditor through its director Mr. P.K. Gupta, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Jai Sai Ram Steel Pvt. Ltd., the Corporate Debtor, due to alleged payment defaults. However, the NCLT bench noted that a CIRP had already been initiated against M/s Jai Sai Ram Steel Pvt. Ltd. in another case, M/s D. P. Industries Vs. M/s Jai Sai Ram Steel Pvt. Ltd. under (IB)-3390(ND)2019, with an order dated 2021-07-30. Mr. Sunil Prakash Sharma was appointed as the Interim Resolution Professional (IRP) to manage the CIR process of the Corporate Debtor. The court considered Section 11 of the IBC, 2016, which prevents

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## Issues and analysis

### Issue 1: Whether another Corporate Insolvency Resolution Process (CIRP) can be initiated against a Corporate …

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

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**Reasoning:** The court reasoned that allowing multiple CIRPs against the same Corporate Debtor would

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**Interpretation:** Section 11 of the IBC is interpreted to mean that once a CIRP is initiated

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**Application:** In this case, since M/s Jai Sai Ram Steel Pvt. Ltd. was already undergoing a

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## Parties

- **Judges:** DEEPTI M…; SH. L. N.…
- **Appellants:** M/s B.B. Steels…
- **Respondents:** M/s Jai Sai Ram…

## Timeline

- **2021-07-30 — Order in (IB)-3390(ND)20…**: Tribunal passed an order in (IB)-3390(ND)2019 initiating CIRP against M/s Jai Sai Ram…
- **2021-09-09 — Order Del…**: The NCLT delivered the order dismissing the…

## 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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