# In the matter of Nice Projects Limited Company Petition No. (IB)-1119(ND)-2020

> NCLT judgment dated 2021-03-08. Citation: TCN-2021-NCLT-02781. The case involves a petition filed by Sh. Dinesh Kumar Goel, an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 8 Mar 2021
- **Citation:** TCN-2021-NCLT-02781
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nice-projects-limited-company-petition-no-ib-1119nd-2020-ddf296b6

## Summary

### Background

The case involves a petition filed by Sh. Dinesh Kumar Goel, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Nice Projects Limited, the Corporate Debtor. The petition was filed due to an alleged default in payment. However, the Tribunal noted that a CIRP had already been initiated against the same Corporate Debtor in another case.

## Facts

Sh. Dinesh Kumar Goel, an Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Nice Projects Limited, the Corporate Debtor. The basis for the petition was an alleged default in payment. The NCLT, New Delhi Bench, noted that a CIRP had already been initiated against the same Corporate Debtor in a prior case, Varun Shuttering Store Vs. M/s Nice Projects Limited in (IB)-3042(ND)/2019, vide order dated 13.02.2020. Mr. Rajinder Kishore Duggal was appointed as the IRP in the prior CIRP. The Tribunal considered Section 11 of the IBC, 2016, which prohibits the initiation of another CIRP against a Corporate Debtor already undergoing such a process.

## Issues and analysis

### Issue 1: Whether another Corporate Insolvency Resolution Process (CIRP) can be initiated against a Corporate …

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

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**Reasoning:** The Tribunal reasoned that allowing multiple CIRPs against the same Corporate Debtor

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**Interpretation:** Section 11 is interpreted to mean that once a CIRP is initiated against a

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**Application:** In this case, since a CIRP had already been initiated against M/s Nice Projects

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## Parties

- **Judges:** SHRI. ABNI RANJAN…; L. N. G…
- **Appellants:** Sh. Dinesh Kumar…
- **Respondents:** M/s Nice Projects…

## Timeline

- **2020-02-13 — Order in (IB)-3042(ND)20…**: Order passed initiating CIRP against M/s Nice Projects Limited in the matter of Varun…
- **2020-01-01 — Filing of Company…**: Company Petition No.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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