Adhunik Corporation Limited Vs Shivam India Limited (NCLT Kolkata)
NCLT Kolkata held that application under section 7 of the Insolvency and Bankruptcy Code for initiating Corporate Insolvency Resolution Process [CIRP] against Shivam India Limited [Corporate Debtor] is admitted. Accordingly, writ petition allowed.
Facts- Present application under section 7 of the Insolvency and Bankruptcy Code, 2016 read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Adhunik Corporation Limited [Financial Creditor] against Shivam India Limited [Corporate Debtor].
Conclusion- It is well established principle of law that presence of an arbitration clause does not prevent commencement of CIRP under Section 7 of the 1 & B Code, 2016. (Dinesh Chand Jain and Ors v. Fabulous Buildcon (P) Ltd. and Ors. ((IB)-37 (PB)/2018) and Reliance Commercial Credit Limited v. Ved Cellulose Ltd (C.P. No. (IB)-156(PB)/2017).
This application filed by Adhunik Corporation Limited, the Financial Creditor, under section 7 of the Code read with rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP against Shivam India Limited, the Corporate Debtor, is admitted.
FULL TEXT OF THE NCLT JUDGMENT/ORDER
1. The Court convened through hybrid mode.
2. Sr. Counsel /Counsels for the parties were heard at length.
