# In the matter of Shree Swastic Sales Corporation (P) Ltd.Rst. A-1 of 2021 in IB-544 (ND)-2020

> NCLT judgment dated 2021-08-19. Citation: TCN-2021-NCLT-01306. The case involves an application for restoration/revival of an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 19 Aug 2021
- **Citation:** TCN-2021-NCLT-01306
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-swastic-sales-corporation-p-ltdrst-a-1-of-2021-in-ib-544-nd-2020-de945179

## Summary

### Background

The case involves an application for restoration/revival of an application under Section 7 of the IBC filed by the Financial Creditor. The CIRP proceedings against the Corporate Debtor, Shree Swastic Sales Corporation (P) Limited, were previously withdrawn as settled between the parties vide order dated 12.9.2021. The Financial Creditor relied upon a judgment of the NCLAT in the case of Ruchita Modi versus Kanchan.

## Facts

Sheetal Impex (P) Ltd, the Financial Creditor, filed an application for restoration/revival of an application under Section 7 of the IBC. Previously, CIRP proceedings against Shree Swastic Sales Corporation (P) Ltd, the Corporate Debtor, were withdrawn due to a settlement between the parties, as per an order dated 12.9.2021. The Financial Creditor relied on a judgment by the NCLAT in Ruchita Modi versus Kanchan, which allowed for the revival of a petition dismissed due to settlement terms. The application sought to restore the Section 7 application, which was initially filed under IB-544/(ND)/2020. The NCLT considered the submissions and the contents of the application.

## Issues and analysis

### Issue 1: Whether the application for restoration/revival of the Section 7 application should be allowed, …

**Ratio:** The legal principle applied here is the court's discretion to allow the revival of a

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**Reasoning:** The court reasoned that the NCLAT's judgment in Ruchita Modi versus Kanchan granted

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**Interpretation:** The interpretation involves understanding the scope of the NCLAT's order in

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** SHRI. P.S.N.…; Narender Kumar…
- **Appellants:** Sheetal Impex (P)…
- **Respondents:** Shree Swastic…
- **Advocates:** Vivek…; Nitin S…

## Timeline

- **2021-08-19 — Order Del…**: Order delivered on 19.8.2021…
- **2021-09-12 — Order of Wit…**: Order dated 12.9.2021 passed in IB-1463/ND/2018, leading to withdrawal of CIRP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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