# In the matter of Sumeru Processors Pvt. Ltd. (IB)-328(PB)-2019

> NCLT judgment dated 2019-04-15. Citation: TCN-2019-NCLT-03912. Prayag Polytech Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 15 Apr 2019
- **Citation:** TCN-2019-NCLT-03912
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sumeru-processors-pvt-ltd-ib-328pb-2019-9d9fcb6a

## Summary

### Background

Prayag Polytech Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Sumeru Processors Pvt. Ltd. However, a similar petition against the same corporate debtor, Sumeru Processors Pvt. Ltd., filed by Enkay (India) Rubber Co. Pvt. Ltd. had already been admitted. The order was passed on 15.04.2019.

## Facts

Prayag Polytech Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Sumeru Processors Pvt. Ltd. An earlier petition filed by Enkay (India) Rubber Co. Pvt. Ltd. against the same corporate debtor, Sumeru Processors Pvt. Ltd., had already been admitted on 15.04.2019. Section 11 of the Code, 2016, prevents the initiation of another Corporate Insolvency Process against a corporate debtor already undergoing such a process. The court dismissed Prayag Polytech's petition as infructuous, allowing them to file a claim with the Insolvency Professional and to revive the petition if the earlier order is set aside by the Appellate Tribunal.

## Issues and analysis

### Issue 1: Whether another Corporate Insolvency Process can be initiated against a corporate debtor that is …

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

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**Reasoning:** The court reasoned that allowing multiple insolvency processes against the same corporate

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**Interpretation:** Section 11 is interpreted to mean that once a corporate insolvency resolution

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**Application:** Since Enkay (India) Rubber Co. Pvt. Ltd.'s petition against Sumeru Processors

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Prayag Polytech…
- **Respondents:** Sumeru Processors…
- **Advocates:** Virender…; Vipul G…; +4 more

## Timeline

- **2018-01-01 — Earlier Petiti…**: Enkay (India) Rubber Co. Pvt. Ltd. filed a…
- **2019-04-15 — Earlier Petition…**: Enkay (India) Rubber Co. Pvt. Ltd.'s petition against Sumeru Processors Pvt. Ltd. was…

## 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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