# In the matter of Sanika Chemicals Pvt. Ltd. C.P. (IB)-791(MB)-2019

> NCLT judgment dated 2019-11-25. Citation: TCN-2019-NCLT-00479. The application was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, and…

- **Court:** NCLT
- **Order date:** 25 Nov 2019
- **Citation:** TCN-2019-NCLT-00479
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sanika-chemicals-pvt-ltd-cp-ib-791mb-2019-ef229e05

## Summary

### Background

The application was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, and the NCLT is considering whether to allow its withdrawal or settlement based on the Supreme Court's guidance in Swiss Ribbons Pvt. Ltd. & Another Vs Union of India & Others.

## Facts

The National Company Law Tribunal, Mumbai Division – II, heard an application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016. The application was filed by Ancon Steel Industries against Sanika Chemicals Pvt Ltd. The counsel for both the applicant and the Interim Resolution Professional (IRP) were present during the hearing on November 25, 2019. The Tribunal considered the averments made in the application and the contents of Form FA. The Tribunal allowed the application, citing the Supreme Court's order in "Swiss Ribbons Pvt. Ltd. & Another Vs Union of India & Others." Specifically, the Tribunal referred to Para 52 of that judgment, which clarifies that once the Code is triggered by a creditor's petition under

…

## Issues and analysis

### Issue 1: Whether the NCLT can allow the withdrawal or settlement of an application under Section 9 of the …

**Ratio:** The NCLT has inherent powers under Rule 11 of the NCLT Rules, 2016, to allow or disallow

…

**Reasoning:** The NCLT relied on the Supreme Court's judgment in Swiss Ribbons Pvt. Ltd. & Another

…

**Interpretation:** The court interpreted the Supreme Court's ruling to mean that the NCLT's

…

**Application:** Applying this interpretation, the NCLT found the present case a fit one to

…

## Parties

- **Judges:** SUCHITRA KANUPARTH…; V. Nallasen…; +1 more
- **Appellants:** Ancon Steel…
- **Respondents:** Sanika Chemicals…
- **Advocates:** Coun…; for the App…; +1 more

## Timeline

- **November 25, 2019 — Hearing and…**: The National Company Law Tribunal, Mumbai Division – II, heard the application and passed…
- **December 11, 2019 — Certified True Copy…**: A certified true copy of the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/sanika-chemicals-pvt-ltd-cp-ib-791mb-2019-ef229e05