# In the matter of Kitply Industries Ltd. C.P. (IB) No.11-GB-2021

> NCLT judgment dated 2021-06-22. Citation: TCN-2021-NCLT-01934. K. S. Marketing, an operational creditor, filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 22 Jun 2021
- **Citation:** TCN-2021-NCLT-01934
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kitply-industries-ltd-cp-ib-no11-gb-2021-ac838105

## Summary

### Background

K. S. Marketing, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Kitply Industries Ltd., the corporate debtor, for initiation of Corporate Insolvency Resolution Process (CIRP). K. S. Marketing claimed an outstanding debt of Rs. 88,24,745.21, including interest, for the supply of plywood materials. The corporate debtor had previously undergone proceedings under SICA, 1985, which abated when the IBC came into force in 2016. The operational creditor had submitted a claim during a prior CIRP initiated by IDBI, which was rejected as it was filed beyond the stipulated 90-day period. The operational creditor then filed an application challenging the rejection, which was also dismissed. The operational

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## Facts

K. S. Marketing (Operational Creditor) supplied plywood to Kitply Industries Ltd. (Corporate Debtor). An amount of Rs. 88,24,745.21 was claimed as outstanding, including 1% monthly interest. A consignment agent agreement dated 01.05.2010 existed between the parties. Kitply Industries Ltd. underwent proceedings under SICA, 1985, which abated when IBC, 2016 came into force. A prior CIRP was initiated by IDBI, registered as C.P. (IB) No.2/GB/2018. The Operational Creditor (K. S. Marketing) filed a claim in the prior CIRP on 26.11.2018, which was rejected by the RP as it was submitted beyond 90 days from the resolution process date. The Adjudicating Authority approved a resolution plan on 07.12.2018 in the prior CIRP. K. S. Marketing filed IA No.22/2019 challenging the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable after the approval of a …

**Ratio:** Once a resolution plan is approved by the Adjudicating Authority under Section 31 of the

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**Reasoning:** The court relied on the Supreme Court's judgments in 'Ghanashyam Mishra and Sons Private

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**Interpretation:** Section 31 of the IBC is interpreted to mean that the approval of a resolution

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**Application:** In this case, a resolution plan had already been approved on 07.12.2018. The

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## Parties

- **Judges:** H.V. Subb…; Prasanta Kumar…
- **Appellants:** K. S. Mar…
- **Respondents:** Kitply Industries…

## Timeline

- **2010-05-01 — Consignment Agent…**: Consignment Agent Agreement dated 01.05.2010 was executed between K. S. Marketing and…
- **2018-05-01 — CIRP Commen…**: CIRP commenced against Kitply Industries…

## 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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