# In the matter of Shree Shankar Infratech Pvt. Ltd. CP (IB) No. 51-CTB-2019

> NCLT judgment dated 2019-11-14. Citation: TCN-2019-NCLT-00604. The case pertains to CP(IB) No. 51/CTB/2019 filed for the termination of the CIRP process,…

- **Court:** NCLT
- **Order date:** 14 Nov 2019
- **Citation:** TCN-2019-NCLT-00604
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-shankar-infratech-pvt-ltd-cp-ib-no-51-ctb-2019-ffc8873f

## Summary

### Background

The case pertains to CP(IB) No. 51/CTB/2019 filed for the termination of the CIRP process, which was initiated on 2019-09-27. The Operational Creditor filed IA No. 155/CTB/2019 seeking the termination. The parties have settled the claim between themselves under a deed of settlement dated 2019-10-30. The Resolution Professional (RP) filed the 2nd progress report. The CoC meeting held on 2019-11-08 approved with 100% voting for filing the petition under Section 12A for withdrawal of the CIRP.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Shree Shankar Infratech Pvt. Ltd. based on an application filed by M/s MT & T Rentals Ltd. The CIRP was initiated on 2019-09-27. Subsequently, the Operational Creditor (M/s MT & T Rentals Ltd.) filed IA No. 155/CTB/2019 seeking the termination of the CIRP. This request was made because the parties had reached a settlement under a deed of settlement dated 2019-10-30. The Resolution Professional (RP) filed the 2nd progress report. A meeting of the Committee of Creditors (CoC) was held on 2019-11-08, where the withdrawal of the CIRP under Section 12A of the Insolvency and Bankruptcy Code (IBC) was approved with 100% voting. The Operational Creditor then sought permission from the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the withdrawal of the CIRP application under …

**Ratio:** Section 12A of the IBC allows for the withdrawal of a CIRP application if the CoC

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**Reasoning:** The court reasoned that the parties had settled the matter between themselves, and the

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**Interpretation:** Section 12A of the IBC is interpreted to provide a mechanism for the withdrawal

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**Application:** In this case, the parties had settled their claims, and the CoC had approved

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## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Respondents:** M/s Shree Shankar…; Sunil Kumar…

## Timeline

- **2019-09-27 — CIRP Init…**: The CIRP process was initiated…
- **2019-10-30 — Deed of Set…**: The parties settled the claim between…

## 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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