# In the matter of Silk Woven Sack Pvt. Ltd. C.P. (I.B) No. 123-9-NCLT-AHM-2019

> NCLT judgment dated 2020-01-06. Citation: TCN-2020-NCLT-02503. The case involves a petition filed by an Operational Creditor under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 6 Jan 2020
- **Citation:** TCN-2020-NCLT-02503
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/silk-woven-sack-pvt-ltd-cp-ib-no-123-9-nclt-ahm-2019-071830b9

## Summary

### Background

The case involves a petition filed by an Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor. The Adjudicating Authority had admitted the petition. However, the Petitioner/Operational Creditor did not suggest the name of any Interim Resolution Professional (IRP) in the petition.

## Facts

The Operational Creditor, Jai Corp Ltd, filed a petition under Section 9 of the IBC, 2016, against the Corporate Debtor, Silk Woven Sack Pvt Ltd, seeking to initiate CIRP. The Adjudicating Authority admitted the petition on 2019-11-06. However, the Operational Creditor did not propose an Interim Resolution Professional (IRP) in their petition. The Adjudicating Authority notes that while it is not mandatory for the Operational Creditor to propose an IRP, the Authority must appoint one from the IBBI panel if the Operational Creditor does not. The Adjudicating Authority then appoints Shri Anish Babubhai Shah as the IRP.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority is required to appoint an Interim Resolution Professional (IRP) …

**Ratio:** While it is not mandatory for the applicant to propose an IRP, the Adjudicating Authority

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**Reasoning:** The court reasoned that the IBC mandates the appointment of an IRP to initiate the CIRP

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**Interpretation:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP

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**Application:** In this case, the Operational Creditor did not propose an IRP. Therefore, the

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Jai Cor…
- **Respondents:** Silk Woven Sack…
- **Advocates:** Arjun Ri…; Krina P…; +1 more

## Timeline

- **2019-11-06 — Previous…**: The Adjudicating Authority admitted the Petition CP(IB) No.123/9/NCLT/AHM/2019 filed by…
- **2020-01-06 — Order Da…**: The Adjudicating Authority appointed Shri Anish Babubhai Shah as the Interim Resolution…

## 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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