# In the matter of S R Industries Ltd. IA No.153-2021 in CP (IB) No.305-Chd-Pb-2019

> NCLT judgment dated 2021-03-15. Citation: TCN-2021-NCLT-02701. The case involves an application (IA No.153/2021) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 15 Mar 2021
- **Citation:** TCN-2021-NCLT-02701
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-r-industries-ltd-ia-no153-2021-in-cp-ib-no305-chd-pb-2019-a5c3029b

## Summary

### Background

The case involves an application (IA No.153/2021) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against S.R. Industries Ltd. based on a petition (CP (IB) No.305/Chd/Pb/2019) filed by Sh. Jaspal Singh, Proprietor of M/s Creative Arts, an Operational Creditor. The CIRP was admitted on 05.03.2021. The application seeks withdrawal of the CIRP after a settlement between the operational creditor and the corporate debtor.

## Facts

Sh. Jaspal Singh, Proprietor of M/s Creative Arts, filed CP (IB) No.305/Chd/Pb/2019 against S.R. Industries Ltd. under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of CIRP. The CP was admitted on 05.03.2021, and a moratorium was declared. Mr. Tara Chand Meenia was appointed as Interim Resolution Professional. Subsequently, Sh. Jaspal Singh, along with Mr. Munish Mahajan (Managing Director, Promoter & Shareholder of S.R. Industries Ltd.), filed IA No.153/2021 seeking withdrawal of the CIRP, stating that a settlement had been reached between the parties. The Interim Resolution Professional had not yet constituted the CoC. The IRP's fees and expenses amounted to ₹2,41,000/-, which Mr. Munish Mahajan agreed to pay. The relevance of these

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) should …

**Ratio:** The legal principle applied is based on the ability of parties to settle disputes,

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**Reasoning:** The court reasoned that since the operational creditor and the corporate debtor had

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**Interpretation:** The interpretation is that the I&B Code and NCLT Rules provide a mechanism

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** RAGHU N…; Ajay Kumar…; +1 more
- **Appellants:** Sh. Jaspal…
- **Respondents:** S.R. Industries…

## Timeline

- **2019-01-01 — CP (IB)…**: CP (IB) No.305/Chd/Pb/2019 filed by Sh.…
- **2021-03-05 — CP (IB) Ad…**: CP (IB) No.305/Chd/Pb/2019 admitted, moratorium declared, and Mr. Tara Chand Meenia…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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