# In the matter of Earth Buildprop Pvt. Ltd. IB-624-PB-2019

> NCLT judgment dated 2022-05-19. Citation: TCN-2022-NCLT-02698. The case involves a Section 7 application under the Insolvency and Bankruptcy Code (IBC), 2016.…

- **Court:** NCLT
- **Order date:** 19 May 2022
- **Citation:** TCN-2022-NCLT-02698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/earth-buildprop-pvt-ltd-ib-624-pb-2019-958dea8f

## Summary

### Background

The case involves a Section 7 application under the Insolvency and Bankruptcy Code (IBC), 2016. The Financial Creditor's counsel submitted that the Corporate Debtor is already undergoing Corporate Insolvency Resolution Process (CIRP) under an order dated 13.05.2019 by the Principal Bench in CP No. 1747 of 2018.

## Facts

The Financial Creditor filed a Section 7 application under the IBC, 2016, against Earth Buildprop Pvt. Ltd. However, the Corporate Debtor was already subjected to CIRP vide order dated 13.05.2019 by the Principal Bench in CP No. 1747 of 2018. The Financial Creditor had already filed their claim with the IRP. Due to the ongoing CIRP, the Section 7 application became infructuous.

## Issues and analysis

### Issue 1: Whether the Section 7 application should be dismissed given that the Corporate Debtor is already …

**Ratio:** An application under Section 7 of the IBC becomes infructuous if the Corporate Debtor is

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

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**Interpretation:** The interpretation is that initiating a fresh CIRP when one is already in

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**Application:** The ratio and reasoning were applied to the facts of the case, leading to the

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Sandeep…
- **Respondents:** M/s. Earth…

## Timeline

- **2018-01-01 — CP No. 1747…**: CIRP initiated against the…
- **2019-05-13 — CIRP Ord…**: Order passed by the Principal Bench…

## 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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