# In the matter of Nirmal Lifestyle Limited CP (IB) No.279-MB-IV-2019

> NCLT judgment dated 2023-01-20. Citation: TCN-2023-NCLT-04958. The case involves a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Jan 2023
- **Citation:** TCN-2023-NCLT-04958
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nirmal-lifestyle-limited-cp-ib-no279-mb-iv-2019-fe6c73fc

## Summary

### Background

The case involves a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Rahul Jain, the Financial Creditor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Nirmal Lifestyle Private Limited, the Corporate Debtor. The Corporate Debtor had availed credit facilities loan of Rs.4Crore 22lakhs which was disbursed on 01.01.2019. The initial term of the loan was 7 days and was repayable on 08.01.2019. As per part IV amended pursuant to order dated 20.07.2014, the Principal outstanding is INR 77,49,849 and default interest as on 14.05.2019 is INR 87,37,134. The date of default is stated 25.01.2019.

## Facts

Rahul Jain, the Financial Creditor, filed a Company Petition under Section 7 of the IBC, 2016, seeking initiation of CIRP against Nirmal Lifestyle Private Limited, the Corporate Debtor. The Corporate Debtor availed a credit facility of Rs. 4.22 Crore, disbursed on January 1, 2019, with an initial repayment term of 7 days, due on January 8, 2019. As per part IV amended pursuant to order dated 20.07.2014, the principal outstanding was INR 77,49,849, and the default interest as of May 14, 2019, was INR 87,37,134. The date of default is stated as January 25, 2019. The NCLT noted that the Corporate Debtor was already undergoing CIRP vide order dated December 20, 2022, in another Company Petition (CP No. 176/2020).

## Issues and analysis

### Issue 1: Whether the present Company Petition seeking initiation of CIRP against the Corporate Debtor is …

**Ratio:** A company cannot undergo CIRP more than once simultaneously. If a company is already

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

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**Interpretation:** The interpretation is that the IBC does not allow for multiple, simultaneous

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**Application:** Given that Nirmal Lifestyle Private Limited was already undergoing CIRP, the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Rahul…
- **Respondents:** Nirmal Lifestyle…

## Timeline

- **2019-01-01 — Loan Disbur…**: Rs.4.22 Crore loan disbursed…
- **2019-01-08 — Repayment…**: Initial repayment date…

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