# In the matter of Essar Shipping Ltd. IA-256(AHM)2021 in CP(IB) 93-7-NCLT-AHM-2020

> NCLT judgment dated 31 Mar 2021. Citation: TCN-2021-NCLT-02523. The application was filed to set aside the Corporate Insolvency Resolution Process (CIRP) of…

- **Court:** NCLT
- **Order date:** 31 Mar 2021
- **Citation:** TCN-2021-NCLT-02523
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/essar-shipping-ltd-ia-256ahm2021-in-cpib-93-7-nclt-ahm-2020-17df5d52

## Summary

### Background

The application was filed to set aside the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor due to a settlement reached between the Financial Creditor and the Corporate Debtor.

## Facts

IA No. 256 of 2021 was filed under regulation 30A of CIRP Regulation, 2016, read with section 12A of the Insolvency and Bankruptcy Code, 2016. The application sought to set aside the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor, Essar Shipping Ltd, because a settlement had been reached between the Financial Creditor, L & T Finance Ltd, and the Corporate Debtor.

The application was submitted in Form FA through the Interim Resolution Professional (IRP), Mr. Umesh Harjivandas Ved. The IRP confirmed that his fees and expenses had been settled. Crucially, no Committee of Creditors (COC) had been formed in this case, and there were no objections from any party regarding the settlement or the application to set aside the CIRP.

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor should be set…

**Ratio:** The CIRP can be set aside if a settlement is reached between the financial creditor and…

**Reasoning:** The NCLT found that a settlement had been reached, the IRP's fees were settled, no COC…

**Interpretation:** Regulation 30A of CIRP Regulation, 2016, read with Section 12A of the…

**Application:** Since L & T Finance Ltd and Essar Shipping Ltd reached a settlement, and all…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Advocates:** For the Applicant:…; Nipun Singhvi,…; +2 more

## Timeline

- **March 31, 2021 — Order Da…**: The NCLT Ahmedabad Bench passed the order allowing the application to set aside the CIRP…

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