# In the matter of Shivam Steels and Tubes Pvt. Ltd. I.A. 2635-2021
In C.P.(IB)-1847(MB)-2019

> NCLT judgment dated 2021-11-08. Citation: TCN-2021-NCLT-00585. The application I.A. 2635/2021 was filed by the Interim Resolution Professional (IRP), Mr.…

- **Court:** NCLT
- **Order date:** 8 Nov 2021
- **Citation:** TCN-2021-NCLT-00585
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivam-steels-and-tubes-pvt-ltd-ia-2635-2021-in-cpib-1847mb-2019-aa5a5cf5

## Summary

### Background

The application I.A. 2635/2021 was filed by the Interim Resolution Professional (IRP), Mr. Jagdish Ratanlal Ahuja, under section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawing the main Company Petition 1847 of 2019. This withdrawal is sought due to a settlement reached between the Operational Creditor and the Corporate Debtor. The Operational Creditor has received ₹7,00,000 against the total amount of ₹13,93,534.25 towards full and final settlement.

## Facts

The Interim Resolution Professional (IRP) filed an application (I.A. 2635/2021) to withdraw the Corporate Insolvency Resolution Process (CIRP) against Shivam Steels And Tubes Pvt Ltd. The application was filed under Section 12A of the Insolvency and Bankruptcy Code, 2016. The reason for the withdrawal was a settlement between the Operational Creditor (Kailash Sinari & Co.) and the Corporate Debtor. The Operational Creditor received ₹7,00,000 against the total amount of ₹13,93,534.25 towards full and final settlement. The IRP had issued an advertisement for inviting claims, but no claims were received, and the Committee of Creditors was not constituted. The Operational Creditor also paid the fees of the IRP amounting to ₹4,34,370 (including GST). The Operational

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC should be allowed, …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of a

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**Reasoning:** The court considered the submissions made by the IRP, the settlement between the

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, the Operational Creditor and the Corporate Debtor reached a

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Respondents:** Shivam Steels And…

## Timeline

- **2019-01-01 — Company Petiti…**: Main Company Petition…
- **2021-09-22 — CIRP Admissio…**: CIRP admission order was passed…

## 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)

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