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

> NCLT judgment dated 2021-03-31. Citation: TCN-2021-NCLT-02519. IA No. 256 of 2021 was filed under regulation 30A of CIRP Regulation, 2016 r.w. 12A of the…

- **Court:** NCLT
- **Order date:** 31 Mar 2021
- **Citation:** TCN-2021-NCLT-02519
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/essar-shipping-ltd-ia-256ahm2021-in-cpib-93-7-nclt-ahm-2020-9bc6ffe1

## Summary

### Background

IA No. 256 of 2021 was filed under regulation 30A of CIRP Regulation, 2016 r.w. 12A of the Insolvency and Bankruptcy Code, 2016 for setting aside the CIRP of the Corporate debtor. The basis for the application was a settlement between the Financial Creditor and the Corporate Debtor. The application was filed in Form FA through the IRP. The IRP confirmed that fees and expenses had been settled, and the COC had not been formed.

## Facts

IA No. 256 of 2021 was filed to set aside the CIRP of L & T Finance Ltd. The application was based on a settlement reached between L & T Finance Ltd and Essar Shipping Ltd. The application was filed under regulation 30A of CIRP Regulation, 2016 r.w. 12A of the Insolvency and Bankruptcy Code, 2016. The IRP, Mr. Umesh Harjivandas Ved, confirmed that his fees and expenses had been settled. The COC had not been formed. The court observed an increasing trend of settlements after the admission of the Corporate Debtor. The court imposed a cost of Rs. 10,000/- on the Corporate Debtor, to be paid to the PM Cares fund.

## Issues and analysis

### Issue 1: Whether the application to set aside the CIRP of the Corporate Debtor should be allowed based on …

**Ratio:** Regulation 30A of CIRP Regulation, 2016 r.w. 12A of the Insolvency and Bankruptcy Code,

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**Reasoning:** The court considered the settlement between the Financial Creditor and the Corporate

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**Interpretation:** Regulation 30A and Section 12A provide a mechanism for amicable resolution and

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**Application:** The court applied Regulation 30A and Section 12A to the facts of the case,

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Respondents:** L & T Finan…

## Timeline

- **2021-03-31 — Order Da…**: The order was passed on March 31, 2021, allowing the application to set aside the CIRP…

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