# In the matter of K V Aromatics Pvt. Ltd. Company Petition (IB)-234(PB)-2021

> NCLT judgment dated 2022-03-21. Citation: TCN-2022-NCLT-03631. The case involves a petition filed by State Bank of India (SBI) against K.V Aromatics Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 21 Mar 2022
- **Citation:** TCN-2022-NCLT-03631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/k-v-aromatics-pvt-ltd-company-petition-ib-234pb-2021-2e18a37c

## Summary

### Background

The case involves a petition filed by State Bank of India (SBI) against K.V Aromatics Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming to be a 'Financial Creditor'. SBI asserted that K.V Aromatics defaulted on a total amount of Rs. 31,20,948.45 as of December 31, 2019. The outstanding amount, including accrued interest, was Rs. 128,28,29,342.52 as of February 24, 2021.

## Facts

State Bank of India (SBI) filed a petition against K.V Aromatics Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming to be a 'Financial Creditor'. SBI asserted that K.V Aromatics defaulted on a total amount of Rs. 31,20,948.45 as of December 31, 2019. The outstanding amount, including accrued interest, was Rs. 128,28,29,342.52 as of February 24, 2021. However, another petition, Company Petition (IB)-20(PB)/2021) M/s. ICICI v. K.V Aromatics Private Limited, had already been admitted against K.V Aromatics, vide order dated March 15, 2022. The court noted that another Corporate Insolvency Process cannot be initiated against a corporate debtor already undergoing a corporate insolvency resolution process.

## Issues and analysis

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

**Ratio:** A corporate debtor already undergoing a corporate insolvency resolution process cannot be

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**Reasoning:** The court reasoned that initiating another CIRP against a corporate debtor already

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**Interpretation:** The interpretation of the Insolvency and Bankruptcy Code suggests that once a

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**Application:** Since K.V Aromatics was already undergoing a CIRP due to the admission of

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## Parties

- **Judges:** Ramalingam…; HEMANT KUMAR…
- **Appellants:** M/s. State Bank…
- **Respondents:** M/s. K.V Aromatics…; Aditya Ga…

## Timeline

- **2019-12-31 — Default…**: SBI claimed K.V Aromatics…
- **2021-02-24 — Outstanding…**: The outstanding amount, including accrued…

## 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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