# In the matter of P.M. Cold Storage Private Limited CP (IB) No.142-KB-2019

> NCLT judgment dated 2021-03-25. Citation: TCN-2021-NCLT-02565. Monotrone Leasing Private Limited, the Financial Creditor, filed a petition CP (IB)…

- **Court:** NCLT
- **Order date:** 25 Mar 2021
- **Citation:** TCN-2021-NCLT-02565
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pm-cold-storage-private-limited-cp-ib-no142-kb-2019-32769169

## Summary

### Background

Monotrone Leasing Private Limited, the Financial Creditor, filed a petition CP (IB) No.142/KB/2019 under Section 7 of the Insolvency and Bankruptcy Code, 2016, against P.M. Cold Storage Private Limited, the Corporate Debtor. The Adjudicating Authority initially rejected the application on December 11, 2019, observing that the Corporate Debtor had filed an interpleader suit disclosing the nature of the alleged transaction and that a competent Civil Court had found a prima facie case in favor of the Corporate Debtor, issuing an interim prohibitory order against the Financial Creditor. This decision was challenged before the NCLAT.

## Facts

Monotrone Leasing Private Limited (Financial Creditor) filed CP (IB) No.142/KB/2019 against P.M. Cold Storage Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority initially rejected the application on December 11, 2019, because the Corporate Debtor had filed an interpleader suit, and a Civil Court had found a prima facie case in favor of the Corporate Debtor, issuing an interim prohibitory order against the Financial Creditor. The Financial Creditor appealed to the NCLAT, which allowed the appeal on July 16, 2020, setting aside the Adjudicating Authority's order and directing it to admit the petition. The Corporate Debtor challenged the NCLAT's order before the Supreme Court, which dismissed the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the application filed under section 7 …

**Ratio:** The Adjudicating Authority's initial rejection was based on the existence of an

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**Reasoning:** The NCLAT and the Supreme Court overturned the Adjudicating Authority's decision,

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**Interpretation:** The interpretation of Section 7 of the IBC suggests that the existence of a

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**Application:** In this case, the NCLAT and the Supreme Court determined that the existence of

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** P.M. Cold Storage…

## Timeline

- **2019-12-11 — Initial Rejection of…**: The Adjudicating Authority rejected the…
- **2020-07-16 — NCLAT Allows…**: The NCLAT allowed the appeal of the Financial Creditor, setting aside the Adjudicating…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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