Page 576 - IBC Orders us 7-CA Mukesh Mohan

Order Passed under Sec 7
By Hon’ble NCLT Kolkata Bench
IN THE NATIONAL COMPANY LAW TRIBUNAL
KOLKATA BENCH

C.P. (I.B.) No. 223/7/NCLT/KB/2017

Decided On: 11.09.2017

Applicant: Havells India Ltd.
Vs.
Respondent: Electrosteel Steels Ltd.

Judges/Coram:
Hon'ble Sh. Vijai Pratap Singh, Member (J)

Counsels:
For Appellant/Petitioner/Plaintiff: Mrs. Mousumi Bhattacharya, Mr. Suvradal Choudhury and Mrs.
Priyanka Choudhury , Learned Advocates

For Respondents/Defendant: Mr. Rudraman Bhattacharya and Ms. Sanchari Chakraborty, Learned
Advocates

ORDER

Hon'ble Sh. Vijai Pratap Singh, Member (J)

1. Petitioner has filed this application under Sec.7 of the Insolvency and Bankruptcy Code, 2013

(from now on referred to 184 B Code, 2016) for initiating corproate insolvency process against the
corproate debtor Electrosteel Steels Ltd. Petitioner has stated that corporate debtor has committed
default in making payment of Rs.90,85,110/-.

2. It is pertinent to mention that corproate insolvency process has already been initiated against
the corporate debtor Electrosteel Steels Ltd. in case No. CP/361/KB/2017. Section 11 of the I & B

Code, 2016 provides that if a corporate debtor undergoing a corporate insolvency process, then he shall
not be entitled to make an application to initiate corporate insolvency resolution process. Moratorium

under Sec.14 of the I & B Code, 2016 provides an institution of any suit or continuation of pending suit
or proceedings against the corporate debtor including execution of any judgment, decree or order in any
court of law, tribunal, arbitration panel or other authority.

3. It is an undisputed fact that corporate debtor Electrosteel Steels Ltd. is undergoing corporate
insolvency resolution process and moratorium has been declared. Therefore, during pendency of

corporate insolvency resolution process no suit or proceedings can continue against the same corporate
debtor. Electrosteel Steels Ltd. is undergoing corporate insolvency resolution process in Case No.
CP/361/KB/2017. As such, Sec.14 of the I & B Code, 2016 prohibits any suit or proceedings against

the same corporate debtor.

4. In the circumstances, the petition under Sec.7 of the I & B Code, 2016 cannot be admitted.

Petitioner, who is a financial creditor is at liberty to file his claim before the corporate resolution
professional. As such, the petition filed by the petitioner under Scc.7 of the I & B Code, 2016 is
rejected, as not maintainable.

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