2024 (5) TMI 1508 - Tri - IBC

Maintainability of section 7 application - initiation of Corporate Insolvency process - a related petition already admitted - HELD THAT - This Tribunal has already passed an order admitting the said Petition and directing commencement of CIRP qua the CD M/s Kaur Sain Spinners Limited and appointed Mr. Nipan Bansal IP having Registration No. IBBI/IPA-001/IP-P00039/2017-18/10100 Email ID [email protected] as IRP to conduct CIRP in respect of the CD M/s Kaur Sain Spinners Limited. Once the CIRP against qua a particular company stands commenced in terms of the provision of Section 5(12) of IBC 2016 it is open to all the Creditors to stake their claim before the IRP in the proceedings already commenced. Application disposed off.

Summary

The National Company Law Tribunal, Chandigarh, presided over by Sh. L.N. Gupta and Sh. Harnam Singh Thakur, addressed an application filed by the Central Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Kaur Sain Spinners Limited. The tribunal had already admitted a related petition (CP (IB) 184/CHD/PB/2020) on the same date, ordering the commencement of CIRP against the respondent and appointing Mr. Nipan Bansal as the Interim Resolution Professional (IRP).

The tribunal noted that once CIRP is initiated under Section 5(12) of the IBC, 2016, all creditors are permitted to submit their claims to the IRP. Consequently, the current application (CP NO. 351/Chd/Pb/2018) was deemed infructuous, granting the applicant the liberty to present its claim before the appointed IRP. The tribunal clarified that if the CIRP concludes without a resolution plan or liquidation, the applicant may revive the proceedings if necessary.