# In the matter of KST Infrastructure Pvt. Ltd. (IB)-1980(PB)-2019

> NCLT judgment dated 2019-09-02. Citation: TCN-2019-NCLT-01631. A petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 against KST…

- **Court:** NCLT
- **Order date:** 2 Sept 2019
- **Citation:** TCN-2019-NCLT-01631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kst-infrastructure-pvt-ltd-ib-1980pb-2019-cbdea9b7

## Summary

### Background

A petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 against KST Infrastructure Pvt. Ltd. However, a similar petition against the same corporate debtor had already been admitted in the matter of Mrs. Sonia Rani and Ors. v. KST Infrastructure Ltd. vide order dated 27.03.2019. The court noted that Section 11 of the Code, 2016 prevents initiating another Corporate Insolvency Process against a corporate debtor already undergoing such a process.

## Facts

A petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 against KST Infrastructure Pvt. Ltd. An earlier petition against the same corporate debtor, Mrs. Sonia Rani and Ors. v. KST Infrastructure Ltd., had already been admitted vide order dated 27.03.2019. Section 11 of the Code, 2016, prevents initiating another Corporate Insolvency Process against a corporate debtor already undergoing such a process. The petitioner was entitled to file its claim before the Insolvency Professional Mr. Sandeep Chandna.

## Issues and analysis

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

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

…

**Reasoning:** The court reasoned that allowing multiple Corporate Insolvency Processes against the same

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**Interpretation:** Section 11 is interpreted to mean that once a Corporate Insolvency Resolution

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**Application:** Since a Corporate Insolvency Process was already underway against KST

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Sudhir…
- **Respondents:** KST Infrastructure…
- **Advocates:** Piyush…; Aditya Pa…; +4 more

## Timeline

- **2019-03-27 — Previous…**: Order passed in the matter of Mrs. Sonia Rani and Ors. v. KST Infrastructure Ltd.,…
- **2019-09-02 — Order Del…**: The court dismissed the petition filed by Sudhir Singh & Anr. against KST Infrastructure…

## 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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