# In the matter of Shri Tubes and Steels Pvt. Ltd. CP (IB) No. 37-BB-2018

> NCLT judgment dated 2018-10-11. Citation: TCN-2018-NCLT-00600. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) by…

- **Court:** NCLT
- **Order date:** 11 Oct 2018
- **Citation:** TCN-2018-NCLT-00600
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-tubes-and-steels-pvt-ltd-cp-ib-no-37-bb-2018-a6e2e0e2

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) by Small Industries Development Bank of India (SIDBI) against a corporate debtor. The respondent company had approached Phoenix ARC Pvt. Ltd. to take over the dues from Petitioner/SIDBI. The ARC has agreed to take over the outstanding of Rs 11.00 Crores as full and final settlement of all dues of the Petitioner/SIDBI.

## Facts

Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against a corporate debtor. The corporate debtor has around 25 employees and is a going concern. The Respondent Company had made an One Time Settlement offer of Rs 9.00 Crores to SIDBI. The offer was made after discounting accumulated losses of Rs 8.50 Crores. The Respondent Company had repaid a sum of Rs 7,51,05,829/- to SIDBI. The Respondent Company has approached M/s Phoenix ARC Pvt. Ltd., to take over the dues from Petitioner/SIDBI. The ARC has agreed to take over the outstanding of Rs 11.00 Crores as full and final settlement of all dues of the Petitioner/SIDBI. The Petitioner failed to accept the proposal.

## Issues and analysis

### Issue 1: Whether the proposal submitted by the …

**Ratio:** The acceptance of a settlement proposal is crucial in determining the course of action in

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**Reasoning:** The learned Counsel for Petitioner submitted that the proposal submitted by the

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**Interpretation:** The interpretation of the acceptance of the settlement proposal is crucial in

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**Application:** In this case, the proposal submitted by the Respondent has not been accepted by

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s Small…
- **Respondents:** M/s Shri Tubes…

## Timeline

- **2018-10-11 — Hearing…**: Hearing of the National Company…
- **2018-10-10 — Affidavit…**: The learned Counsel for Respondent has filed an Affidavit dated 10/10/2018 by the…

## 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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