TaxTMI 
TaxTMI 
2020 (2) TMI 287
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....mited (Corporate Debtor) stating that the Corporate Debtor defaulted in repaying an amount of Rs. 148,65,55,934/- (Rs. One Hundred and Forty Eight Crores, Sixty Five Lakhs, Fifty Five Thousand Nine Hundred and Thirty Four only). The amount claimed to be in default is with effect from 13.11.2015 and sought for admission of the Petition, initiation of Corporate Insolvency Resolution Process, granting moratorium and appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon. AVERMENTS 2. The facts germane to the Petition in brief are:- (1) The Operational Creditor is engaged in manufacturing and supply of steel products and Corporate Debtor is engaged in trading of steel products. The Corporate....
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....aintain the Petition under Section 9 of the Code, even though it is under CIRP and further stated that the Resolution Professional appointed would be representing the Operational Creditor. 5. A memo dated 26.09.2019 is filed by the Counsel for Operational Creditor stating that he apprised the Resolution Professional about the status of the case for Operational Creditor which is currently under CIRP and advised the Counsel for Operational Creditor to proceed with initiation of CIRP against the Corporate Debtor. 6. It is the case of Petitioner/Operational Creditor that it supplied steel products to Corporate Debtor from July to November 2015 and the Corporate Debtor failed to make payments which is to the tune of Rs. 148,65,55,934/-. Th....
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.... as the Petitioner is undergoing CIRP. 9. In this connection we heard the learned counsel for the petitioner about the maintainability of the petition in light of the bar contained in section 11 of I & B Code. For better appreciation we quote section 11(a) hereunder: "11. The following persons shall not be entitled to make an application to initiate corporate insolvency resolution process under this Chapter, namely:- (a) A corporate debtor undergoing a corporate insolvency resolution process; or" 10. Thus, section 11 of I & B Code deals with the persons not entitled to make application. The persons shown in clauses (a) to (d) of section 11 of I & B Code shall not be entitled to make an application to initiate corpora....
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.... not be entitled to make an application to initiate CIRP. A corporate debtor who is undergoing CIRP is, therefore, not entitled to file application to initiate CIRP. It is not in dispute that the petitioner is undergoing CIRP. The CIRP will be started against the debtors only. When the petitioner, as a corporate debtor, is undergoing CIRP it cannot file application to initiate CIRP of another company in any capacity, be that operational creditor or financial creditor, be it under section 11 of the I & B Code or corporate applicant in terms of section 10 of the I & B Code. Section 11 of I & B Code is very clear that person undergoing CIRP is not entitled to file application to initiate CIRP. That Resolution Professional is now appearing for ....
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.... conferred on him under sub-clauses 2(a) and (b) of section 25 of I & B Code. 15. The learned counsel for the petitioner relied on a decision dated [06-02-2018] of the NCLT, Mumbai Bench in the matter of Jai Ambe Enterprise v. S.N. Plumbing (P.) Ltd. [MA 78/2018 in CP 1268/I&BC/NCLT/MB/MAH/2017]. 16. The learned counsel for the petitioner also relied on a decision of the Hon'ble High Court of Delhi in the matter of Power Grid Corporation of India Ltd. v. Jyoti Structures Ltd., [2018] 145 SCL 449 17. We have seen the decision of the Principal Bench, NCLT, New Delhi in the matter of Tecpro Systems Ltd. v. Bajaj Infrastructure Company Ltd., 2017 SCC Online NCLT 9998, wherein the Principal Bench, NCLT, New Delhi held that the compa....