The National Company Law Tribunal (NCLAT) Ahmedabad, held in a matter between Vrundavan Residency Pvt Ltd. and Mars Remedies Pvt Ltd. that there cannot be simultaneous Corporate Insolvency Resolution Process (CIRP) proceedings against the same corporate debtor.
The applicant, M/s Vrundavan Residency Pvt Ltd. had filed an insolvency petition under the Section 7 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against the Respondent M/s. Mars Remedies Pvt Ltd. Which was rejected by the Adjudicating Authority. Aggrieved the applicant filed this appeal before the National Company Law Appellant Tribunal, which was allowed. Wherein the NCLAT redirected the matter to the Adjudicating Authority to hear the parties and to pass fresh orders within 12 weeks.
The main petition was taken up afresh, in view of initiation of CIRP of the Corporate Debtor after the respondent filed a civil appeal before the Hon’ble Supreme Court which was later withdrawn. The main petition passed an order initiating CIRP procedures against the Corporate Debtor. Whereon, the Supreme Court of India imposed stay. Thus, the Applicant filed this instant application seeking restoration of main petition and passing of consequential order of admission of Respondent into CIRP.
This appellant authority observed that since the Supreme Court has merely granted stay in CIRP proceeding in order to decide the appeal filed against the order of NCLAT directing NCLT to admit the IB application. Consequently, there would be either setting aside of order of initiation of CIRP of the Corporate Debtor or continuance of CIRP proceedings of the Corporate Debtor and since there cannot be two simultaneous CIRP proceedings against the same Corporate Debtor, hence the outcome of the proceedings before Hon’ble Supreme Court shall decide the fate of Corporate Debtor.
It further opined that the present application cannot be considered at this stage. However, the present Applicant can avail the remedy of restoring the main application subject to the outcome of the appeal before Hon’ble Supreme Court, and disposed off the application.