# In the matter of Nexus Electro Steel Limited IBA-1217-2019

> NCLT judgment dated 2021-04-09. Citation: TCN-2021-NCLT-02414. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 Apr 2021
- **Citation:** TCN-2021-NCLT-02414
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nexus-electro-steel-limited-iba-1217-2019-7ecd7331

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Shreeji Translogistics Limited (Operational Creditor) against Nexus Electro Steel Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The application was based on the Corporate Debtor's alleged default in paying a principal amount of Rs. 56,78,308/- and interest of Rs. 35,15,068/-, totaling Rs. 91,93,376/- as of August 2, 2019.

## Facts

Shreeji Translogistics Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Nexus Electro Steel Limited, the Corporate Debtor. The basis for the application was the Corporate Debtor's alleged default in paying a principal amount of Rs. 56,78,308/- and interest of Rs. 35,15,068/-, totaling Rs. 91,93,376/- as of August 2, 2019. The Adjudicating Authority noted that CIRP had already been initiated against the same Corporate Debtor in IBA/377/2020.

## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** When CIRP has already been initiated against a Corporate Debtor, subsequent applications

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**Reasoning:** The court reasoned that since CIRP had already been initiated against Nexus Electro Steel

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**Interpretation:** The interpretation of the Insolvency and Bankruptcy Code, 2016, is that once

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**Application:** In this case, the court applied the principle that a subsequent CIRP

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** Shreeji Translogis…
- **Respondents:** Nexus Electro…

## Timeline

- **2019-08-02 — Default…**: The Corporate Debtor allegedly defaulted on a principal amount of Rs. 56,78,308/- and…
- **2021-03-30 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) initiated against Nexus Electro Steel…

## 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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