# In the matter of Sarveshwar Creations Pvt. Ltd. CA-1739-C-V-ND-2020 in (IB)-1874(ND) 2019

> NCLT judgment dated 2020-08-21. Citation: TCN-2020-NCLT-00806. The case involves an application filed by the promoters, shareholders, and suspended directors…

- **Court:** NCLT
- **Order date:** 21 Aug 2020
- **Citation:** TCN-2020-NCLT-00806
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sarveshwar-creations-pvt-ltd-ca-1739-c-v-nd-2020-in-ib-1874nd-2019-6ef7b1a7

## Summary

### Background

The case involves an application filed by the promoters, shareholders, and suspended directors of Sarveshwar Creations Private Limited (Corporate Debtor) to terminate the Insolvency Resolution Process (IRP) initiated against the company. The IRP was initiated vide order dated 2020-02-13 in the insolvency petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The application for termination was filed because the outstanding amount owed to the Operational Creditor, M/s Anurutan Textiles Private Limited, had been amicably settled between the parties. The settled amount was already paid to the Operational Creditor based on a Settlement Agreement dated 2020-02-26. After the settlement, the Operational Creditor had no grievance against the

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## Facts

M/s Anurutan Textiles Private Limited, the Operational Creditor, initiated insolvency proceedings against Sarveshwar Creations Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The insolvency petition was admitted on 2020-02-13. Subsequently, the Operational Creditor and the Corporate Debtor reached an amicable settlement, with the Corporate Debtor paying the outstanding amount to the Operational Creditor based on a Settlement Agreement dated 2020-02-26. Following the settlement, the Operational Creditor no longer had any grievances against the Corporate Debtor and wished to withdraw the insolvency petition. An application for termination of the Corporate Insolvency Resolution Process (CIRP) was filed. However,

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency petition filed by the Suspended Board of …

**Ratio:** Section 12A of the IBC and Regulation 30A of the CIRP Regulations prescribe specific

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**Reasoning:** The court reasoned that the application for withdrawal was not filed by the Operational

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**Interpretation:** Section 12A and Regulation 30A are interpreted to mean that only the original

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**Application:** In this case, the application for withdrawal was filed by the Suspended Board

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Respondents:** SARVESHWAR…; Vansdeep…

## Timeline

- **2020-02-13 — Initiation…**: Order passed initiating the Insolvency Resolution Process (IRP) against the Corporate…
- **2020-02-26 — Settlement Ag…**: Settlement Agreement reached between the Operational Creditor, M/s Anurutan Textiles…

## 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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