# In the matter of Sahara Q Shop Unique Products Range Ltd. IA(I.B.C)-266(MB)2020 in C.P. (IB)-1378(MB)2017

> NCLT judgment dated 2021-10-26. Citation: TCN-2021-NCLT-00690. The case involves an application (IA 266 of 2020) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 26 Oct 2021
- **Citation:** TCN-2021-NCLT-00690
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sahara-q-shop-unique-products-range-ltd-iaibc-266mb2020-in-cp-ib-1378mb2017-f18a0071

## Summary

### Background

The case involves an application (IA 266 of 2020) filed in connection with a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The Operational Creditor filed the application under Section 12A, informing the bench that the matter has been settled with the Corporate Debtor. The Operational Creditor seeks to withdraw the Company Petition. The Corporate Debtor also filed an affidavit stating that no proceedings are pending under Section 7 or 9 before any bench of NCLT, Mumbai.

## Facts

The Operational Creditor, represented by Ms. Trupti Shetty, filed an application (IA 266 of 2020) to withdraw the Company Petition. The application was filed under Section 12A of the Insolvency and Bankruptcy Code, 2016. The reason for the withdrawal is that the Operational Creditor and the Corporate Debtor, represented by Ms. Zinnea Mehta, have settled the matter. The Corporate Debtor also submitted an affidavit stating that there are no pending proceedings under Section 7 or 9 before any NCLT bench in Mumbai. The original Company Petition number is CP 1378 of 2017.

## Issues and analysis

### Issue 1: Whether IA 266 of 2020 should be allowed, permitting the Operational Creditor to withdraw the …

**Ratio:** The legal principle applied is that if the Operational Creditor and Corporate Debtor

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**Reasoning:** The court reasoned that the Operational Creditor had settled the matter with the

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**Interpretation:** This issue involves the interpretation of Section 12A of the Insolvency and

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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:** Shyam Babu…; P.N. Des…
- **Appellants:** S. GURUMO…
- **Respondents:** Sahara Q Shop…

## Timeline

- **2021-10-26 — Hearing…**: Hearing of the Mumbai Bench of the…
- **2020-01-01 — IA 266 of 202…**: IA 266 of 2020 filed by the Operational…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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