# In the matter of Sheetal Shipping and Metal Processor Pvt. Ltd. IA No. 849-2010 in CP (IB) No. 585-9-HDB-2018

> NCLT judgment dated 2020-10-05. Citation: TCN-2020-NCLT-00464. The case involves an application filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 5 Oct 2020
- **Citation:** TCN-2020-NCLT-00464
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sheetal-shipping-and-metal-processor-pvt-ltd-ia-no-849-2010-in-cp-ib-no-585-9-hd-60ea528c

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking permission to withdraw a Company Petition (CP(IB)No.585/9/HDB/2018). The Tribunal had previously admitted a petition under Section 9 of the IBC filed by an Operational Creditor, initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and appointing the IRP. After the public announcement, the IRP received only one claim from the operational creditor. The operational creditor and corporate debtor subsequently settled their disputes and entered into a memorandum of settlement.

## Facts

On 25.08.2020, the Tribunal admitted a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Om Shiv Shakti Iron Industries (P) Ltd, an Operational Creditor, against Sheetal Shipping & Metal Processor Pvt Ltd, the Corporate Debtor, initiating the Corporate Insolvency Resolution Process (CIRP) and appointing an Interim Resolution Professional (IRP), G. Kalpana. Following the admission, the IRP issued a public announcement on 28.08.2020, inviting creditors to submit their claims. The IRP received only one claim from the operational creditor. Subsequently, the operational creditor and the corporate debtor entered into a Memorandum of Settlement on 21.09.2020, resolving their disputes. The IRP then filed an application under Section 12A of the

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can permit the withdrawal of the application under Section 12A …

**Ratio:** Section 12A of the I&B Code, read with Regulation 30A of the IBBI (Insolvency

…

**Reasoning:** The court reasoned that the procedure prescribed under Regulation 30A of IBBI (Insolvency

…

**Interpretation:** Section 12A of the I&B Code provides a mechanism for parties to settle

…

**Application:** In this case, the operational creditor and the corporate debtor settled their

…

## Parties

- **Judges:** K. Anantha…; Veera Brahma Rao…
- **Appellants:** Om Shiv Shikti…
- **Respondents:** Sheetal Shipping…

## Timeline

- **2020-08-25 — Admission of…**: The Tribunal admitted the petition filed under Section 9 of the Insolvency and Bankruptcy…
- **2020-08-28 — Public Annou…**: The IRP issued a public announcement calling…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

---

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/sheetal-shipping-and-metal-processor-pvt-ltd-ia-no-849-2010-in-cp-ib-no-585-9-hd-60ea528c