VERTIV ENERGY PRIVATE LIMITED Vs. TECPRO SYSTEMS LIMITED

JUDGEMENT

(1.) The Vertiv Energy Private Limited has approached this Tribunal by filing the instant application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for brevity 'the Code') with a prayer to trigger the Insolvency Resolution Process in the matter of Tecpro Systems Limited who has been styled as 'Operational Debtor'. The total amount of default stated to be Rs. 34,88,622/- as on 12.07.2013 which has remained unpaid by the 'Operational/Corporate Debtor'. It is pertinent to notice that against the Tecpro Systems Limited Corporate Insolvency Resolution Process has already been initiated in the case of Edelweiss Assets Reconstruction Company Ltd. v. Tecpro Systems Limited, C.A. No. (IB)-197(PB)/2017 decided on 07.08.2017. The petition has been admitted and Mr. Venkatesan Sankaranarayanan, D 301, Sreevatsa Residency, 10 G N Mills Post, Mettupalayam Road, Coimbatore- 641029 has been appointed as Interim Resolution Professional. It is thus apparent that against the same company i.e. Tecpro Systems Limited Insolvency Resolution Process is in progress and there is a bar created by Section 11 (a) of the Code which reads as follows:-

(2.) A perusal of the above provision shows that a Corporate Debtor undergoing a Corporate Insolvency Resolution Process would not be entitled even to make an application. There can be no doubt that once the competence to file application by the Corporate Debtor has been eclipsed then even in pending application there can be no second Insolvency Resolution Process initiated. The Operational Creditor has to become part of the same Insolvency Resolution Process as per the provisions of the Code. Therefore, the application is disposed of with the observation that the Operational Creditor may make a claim before the Corporate Insolvency Professional in accordance with the provisions of the Code. It may also become a member of the Creditors' Committee as per the provisions of the Code and the Rules.

(3.) The Petition is disposed of in the above terms.