# In the matter of Reliance Naval and Engineering Ltd. C.P. (I.B) No. 172-7-NCLT-AHM-2017

> NCLT judgment dated 2018-02-19. Citation: TCN-2018-NCLT-01800. The case involves an application (IA 51 of 2018) filed by Reliance Naval and Engineering…

- **Court:** NCLT
- **Order date:** 19 Feb 2018
- **Citation:** TCN-2018-NCLT-01800
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reliance-naval-and-engineering-ltd-cp-ib-no-172-7-nclt-ahm-2017-9f4d46fd

## Summary

### Background

The case involves an application (IA 51 of 2018) filed by Reliance Naval and Engineering Limited (Corporate Debtor) seeking to keep Company Petition (IB) No. 172 of 2017, filed by IFCI Limited (Financial Creditor), in abeyance. IFCI Limited had filed CP(IB) No.171 of 2017 against Reliance Marine and Offshore Limited, styling it as Corporate Debtor/Principal Borrower, and CP(IB) No. 172 of 2017 against Reliance Naval and Engineering Limited, styling it as Corporate Debtor/Corporate Guarantor. Reliance Marine and Offshore Limited requested adjournment in CP(IB) No.171 of 2017, arguing that proceedings against the Principal Borrower and Corporate Guarantor should proceed simultaneously, which was rejected. The order of the Adjudicating Authority dated 18th January, 2018,

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## Facts

IFCI Limited filed CP(IB) No.171 of 2017 against Reliance Marine and Offshore Limited as the Principal Borrower and CP(IB) No. 172 of 2017 against Reliance Naval and Engineering Limited as the Corporate Guarantor, both under Section 7 of the Insolvency and Bankruptcy Code, 2017. Reliance Marine and Offshore Limited requested an adjournment in CP(IB) No.171, seeking simultaneous proceedings against both entities, which was rejected by the Adjudicating Authority on January 18, 2018. This rejection was appealed to the NCLAT (Company Appeal No.40 of 2018). Reliance Naval and Engineering Limited then filed IA 51 of 2018, seeking to keep CP(IB) No.172 in abeyance pending the NCLAT's decision. The NCLAT's order noted that a petition under Section 7 had been filed against both

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process can be initiated by the same Financial Creditor …

**Ratio:** The legal principle is that the issue of whether a Financial Creditor can proceed against

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**Reasoning:** The court reasoned that the issue is already pending before the NCLAT. The Adjudicating

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**Interpretation:** The interpretation is that the Adjudicating Authority has the jurisdiction to

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**Application:** In this specific case, the Adjudicating Authority can proceed with CP(IB)

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Manorama…
- **Respondents:** Reliance Naval…; IFCI…

## Timeline

- **2017-01-01 — Filing of CP(IB) No.171…**: IFCI Limited filed CP(IB) No.171 of 2017…
- **2017-01-01 — Filing of CP(IB) No.172…**: IFCI Limited filed CP(IB) No. 172 of 2017…

## 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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