# In the matter of Sara Suole Private Limited C.P. (IB)No. 13-BB-2021

> NCLT judgment dated 2021-03-15. Citation: TCN-2021-NCLT-02711. The case pertains to C.P. (IB) No.13/BB/2021 filed by M/s. SSA and Company ('Operational…

- **Court:** NCLT
- **Order date:** 15 Mar 2021
- **Citation:** TCN-2021-NCLT-02711
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sara-suole-private-limited-cp-ibno-13-bb-2021-8929e262

## Summary

### Background

The case pertains to C.P. (IB) No.13/BB/2021 filed by M/s. SSA and Company ('Operational Creditor') under Section 9 of the IBC, 2016, read with Rule 6 of the I&B (AAA) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Sara Soule Private Limited, alleging default. The case was listed for admission on multiple dates and adjourned at the request of the parties to explore settlement possibilities.

## Facts

M/s. SSA and Company, the Operational Creditor, filed C.P. (IB) No.13/BB/2021 under Section 9 of the IBC, 2016, seeking to initiate CIRP against M/s. Sara Soule Private Limited, the Corporate Debtor, alleging a default of Rs. 1,09,61,748/-. The case was listed for admission on 25.02.2021, 09.03.2021, and 15.03.2021, and adjourned on the request of the parties to explore settlement. The Respondent sent an email dated 05.03.2021 admitting the outstanding amount and proposing a payment plan. The Petitioner submitted a memo with an annexure dated 09.03.2021, including the email from the Corporate Debtor. The Respondent's counsel confirmed the email. The relevance of the facts is that they demonstrate the attempt to settle the matter out of court, leading to the disposal of

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be initiated against M/s. Sara …

**Ratio:** The initiation of CIRP is contingent upon the establishment of a default and the absence

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**Reasoning:** The court considered the settlement proposal submitted by the Respondent, indicating a

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**Interpretation:** The legal issue involves interpreting the provisions of the IBC regarding the

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**Application:** The court applied the principle that CIRP should be initiated only when there

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. SSA and…
- **Respondents:** M/s. Sara Soule…

## Timeline

- **2021-02-25 — Case Listed for…**: The case was initially listed…
- **2021-03-09 — Case Listed for…**: The case was listed for…

## 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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