# In the matter of Simplex Infrastructures Limited

> NCLT judgment dated 2024-04-02. Citation: TCN-2024-NCLT-01884. Canara Bank initiated a Corporate Insolvency Resolution Process (CIRP) against Simplex…

- **Court:** NCLT
- **Order date:** 2 Apr 2024
- **Citation:** TCN-2024-NCLT-01884
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/simplex-infrastructures-limited-b0057d14

## Summary

### Background

Canara Bank initiated a Corporate Insolvency Resolution Process (CIRP) against Simplex Infrastructures Limited by filing C.P. (IB) No. 94/KB/2021 under Section 7 of the Insolvency and Bankruptcy Code, 2016. Simplex Infrastructures Limited, as the applicant, filed I.A. (IB) No. 1324/(KB)/2022 seeking the dismissal of the CIRP application or, alternatively, a deferment of the hearing. The applicant argued that it had several awards in its favor, exceeding the financial creditor's claim, and was undergoing restructuring. The Financial Creditor opposed the application, contending that the corporate debtor was insolvent and had defaulted on payments.

## Facts

Simplex Infrastructures Limited, engaged in infrastructure projects, is the Corporate Debtor. Canara Bank, the Financial Creditor, filed C.P. (IB) No. 94/KB/2021 under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Simplex Infrastructures Limited. Simplex Infrastructures Limited filed I.A. (IB) No. 1324/(KB)/2022 seeking dismissal or deferment of the CIRP, claiming it had awards exceeding the debt and was undergoing restructuring. The applicant claimed to have 36 awards in its favor, with Rs. 554.17 Crore already realized and another 1212.58 crores expected. A consortium meeting was held on October 19, 2023, to discuss restructuring. The Financial Creditor argued that the Corporate Debtor was insolvent and had defaulted on payments. The

…

## Issues and analysis

### Issue 1: Whether the principles laid down in the Vidarbha Industries Power Limited case are applicable to …

**Ratio:** The Supreme Court in M. Suresh Kumar Reddy v. Canara Bank clarified that judgments and

…

**Reasoning:** The NCLT found that the facts in the present case differed significantly from those in

…

**Interpretation:** The Vidarbha judgment provides discretion to the Adjudicating Authority to

…

**Application:** The NCLT determined that the Vidarbha principles did not apply because the

…

## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** SIMPLEX INFRASTRUC…; Canara…

## Timeline

- **2021-01-01 — Filing of Company…**: Canara Bank filed Company Petition (IB) No. 94/KB/2021 against Simplex Infrastructures…
- **2022-01-01 — Filing of Interlocutory…**: Simplex Infrastructures Limited filed I.A. (IB) No. 1324/(KB)/2022 seeking dismissal or…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/simplex-infrastructures-limited-b0057d14