# In the matter of Morpheus Developers Pvt. Ltd. (IB)-508(PB)-2019

> NCLT judgment dated 2019-03-01. Citation: TCN-2019-NCLT-04609. 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-04609
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/morpheus-developers-pvt-ltd-ib-508pb-2019-af739492

## Summary

### Background

The case involves a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against a corporate debtor. However, a prior petition against the same corporate debtor has already been admitted by the bench in the case of Mr. Kapil Arora v. Morpheus Developers Private Limited. The order for the prior petition was dated 2019-02-12.

## Facts

Ekta Srivastava & anr. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s. Morpheus Developers Pvt. Ltd. However, a previous petition against the same corporate debtor, filed by Mr. Kapil Arora, had already been admitted by the same bench on 2019-02-12. Section 11 of the Code prevents initiating another Corporate Insolvency Process against a corporate debtor already undergoing such a process. The Insolvency Professional involved is Mr. Ashutosh Jain. The court dismissed Ekta Srivastava's petition as infructuous but allowed the petitioner to file for revival or a fresh petition if necessary.

## 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

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**Reasoning:** The court reasoned that allowing multiple insolvency processes against the same corporate

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**Interpretation:** Section 11 is interpreted as a bar against initiating parallel insolvency

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**Application:** In this case, since a petition filed by Mr. Kapil Arora against M/s. Morpheus

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## Parties

- **Judges:** DEEPTI M…; SH. S.K MOH…
- **Appellants:** Ekta Sriv…
- **Respondents:** M/s. Morpheus…

## Timeline

- **2019-02-12 — Previous Petition…**: A petition filed by Mr. Kapil Arora against Morpheus Developers Private Limited was…
- **2019-03-01 — Order Del…**: The court delivered the order dismissing the…

## 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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