Fresh insolvency initiation barred during ongoing corporate insolvency resolution process; claims may be filed with the insolvency professional.

A fresh corporate insolvency resolution process cannot be initiated against a corporate debtor already undergoing insolvency proceedings, as the statutory bar under the Insolvency and Bankruptcy Code operates during the subsistence of the existing process. On that basis, the tribunal did not examine the merits of the later application and treated the second initiation as impermissible. The applicants were left free to file their claim before the insolvency professional in accordance with law.

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Issues: Whether a fresh corporate insolvency resolution process could be initiated against a corporate debtor that was already undergoing corporate insolvency resolution proceedings under Section 11 of the Insolvency and Bankruptcy Code, 2016.

Analysis: Since another application for initiation of corporate insolvency resolution process against the same corporate debtor had already been admitted, the statutory bar under Section 11 operated and made it unnecessary to examine the merits of the present application. The applicants were, however, left at liberty to lodge their claim before the insolvency professional in accordance with law.

Conclusion: A fresh insolvency process was held impermissible during the subsistence of an ongoing corporate insolvency resolution process, and the application was disposed of accordingly.

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