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

> NCLT judgment dated 2019-03-01. Citation: TCN-2019-NCLT-04627. 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-04627
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/morpheus-developers-pvt-ltd-ib-508pb-2019-d8ca11c5

## Summary

### Background

The case involves a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against a corporate debtor. However, a similar petition against the same corporate debtor has already been admitted by the same bench in a previous order dated 2019-02-12. The previous case was Mr. Kapil Arora v. Morpheus Developers Private Limited, [(IB)-949(PB)/2018].

## Facts

Ekta Srivastava & anr. filed a petition against M/s. Morpheus Developers Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. 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 insolvency process against a corporate debtor already undergoing one. The petitioners were granted liberty to file a fresh petition or revive the existing one if necessary.

## Issues and analysis

### Issue 1: Whether a fresh insolvency petition can be initiated against a corporate debtor when an insolvency …

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

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**Reasoning:** The court reasoned that initiating another insolvency process against the same corporate

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**Interpretation:** Section 11 is interpreted to prevent multiple, simultaneous insolvency

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**Application:** Since Morpheus Developers Pvt. Ltd. was already undergoing a corporate

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## Parties

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

## Timeline

- **2019-02-12 — Previous…**: A petition filed by Mr. Kapil Arora against Morpheus Developers Private Limited was…
- **2019-03-01 — Order Del…**: The court dismissed the petition filed by Ekta Srivastava & anr. as infructuous, granting…

## 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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