# In the matter of Shakti Refoils & Agro Foods Products Pvt. Ltd. CP (IB) No. 713-9-NCLT-AHM-2019

> NCLT judgment dated 2020-07-29. Citation: TCN-2020-NCLT-00935. The case involves a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016. The…

- **Court:** NCLT
- **Order date:** 29 Jul 2020
- **Citation:** TCN-2020-NCLT-00935
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shakti-refoils-agro-foods-products-pvt-ltd-cp-ib-no-713-9-nclt-ahm-2019-afcecafb

## Summary

### Background

The case involves a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor's counsel, Mr. Tapan Patel, appeared. It was brought to the court's notice that the Corporate Debtor had already been admitted into Corporate Insolvency Resolution Process (CIRP) via order dated 27.01.2020 in CP(IB)630/2019.

## Facts

The Operational Creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Bhagyoday Cotton Industries. However, it was brought to the court's notice that the Corporate Debtor, Bhagyoday Cotton Industries, had already been admitted into CIRP via an order dated 27.01.2020 in CP(IB)630/2019. The Operational Creditor is Shakti Refoils & agro Foods Products Pvt Ltd. The court considered this fact and disposed of the current proceeding, granting the Operational Creditor the liberty to approach the RP/IRP in the existing CIRP or to revive the disposed proceeding if the CIRP is set aside. The relevance of the fact that CIRP was already initiated is that it made the current proceeding redundant.

## Issues and analysis

### Issue 1: Whether the current proceeding under Section 9 of the Insolvency and Bankruptcy Code, 2016 should …

**Ratio:** When a Corporate Debtor is already undergoing CIRP, a separate proceeding for the same

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**Reasoning:** The court reasoned that since the Corporate Debtor was already undergoing CIRP, the

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**Interpretation:** The interpretation is that the Insolvency and Bankruptcy Code aims for a

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**Application:** In this case, the court applied the ratio by disposing of the current

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Respondents:** Bhagyoday Cotton…; Shakti Refoils &…

## Timeline

- **2020-01-27 — CIRP Admi…**: Corporate Debtor admitted…
- **2020-07-29 — Order Da…**: Order disposing of CP(IB)…

## 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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