# In the matter of Shree Rajasthan Syntex Ltd. CP No. (IB)- 28-7-JPR-2022

> NCLT judgment dated 2023-04-19. Citation: TCN-2023-NCLT-03742. The Bank of Baroda, as the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 19 Apr 2023
- **Citation:** TCN-2023-NCLT-03742
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-rajasthan-syntex-ltd-cp-no-ib-28-7-jpr-2022-9bcf26da

## Summary

### Background

The Bank of Baroda, as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Shree Rajasthan Syntex Ltd., the Corporate Debtor. The application was based on an alleged default in the repayment of a Financial Debt amounting to Rs. 35,66,23,325.47/-. A Pre-Packed Insolvency Resolution Process (PPIRP) had already been initiated against the Corporate Debtor in CP No. (IBPP)- 01/54C/JPR/2022, involving M/s Shree Rajasthan Syntex Limited vs. State Bank of India & Ors., with an order dated 19.04.2023.

## Facts

Bank of Baroda, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Shree Rajasthan Syntex Ltd., the Corporate Debtor. The application was filed due to an alleged default in the repayment of a Financial Debt amounting to Rs. 35,66,23,325.47/-. Prior to this application, a Pre-Packed Insolvency Resolution Process (PPIRP) had already been initiated against the Corporate Debtor in CP No. (IBPP)- 01/54C/JPR/2022, involving M/s Shree Rajasthan Syntex Limited vs. State Bank of India & Ors., with an order dated 19.04.2023. The applicant was directed to submit their claim to the IRP.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code for initiation of …

**Ratio:** The existence of a prior PPIRP against the same Corporate Debtor influences the

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**Reasoning:** The court's reasoning is based on the principle of avoiding parallel proceedings and

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**Interpretation:** The interpretation is that while a Section 7 application can be filed, its

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**Application:** In this specific case, the court applied the ratio by directing the Financial

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Bank of B…
- **Respondents:** M/S SHREE…

## Timeline

- **2022-01-01 — CP No. (IB)- 28/7/JPR/20…**: Filing of CP No. (IB)- 28/7/JPR/2022 by…
- **2023-04-19 — Order in CP No. (IBPP)-…**: Order passed in CP No. (IBPP)- 01/54C/JPR/2022, M/s Shree Rajasthan Syntex Limited vs.…

## 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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