# In the matter of SNS Starch Limited IA No. 01-2020 in CP (IB) No. 515-9-HDB-2019

> NCLT judgment dated 2020-01-02. Citation: TCN-2020-NCLT-02577. The case involves an application filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 2 Jan 2020
- **Citation:** TCN-2020-NCLT-02577
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sns-starch-limited-ia-no-01-2020-in-cp-ib-no-515-9-hdb-2019-6943e070

## 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, read with Regulation 30A of the IBBI (CIRP) Regulations, 2016, seeking permission to withdraw the Company Petition i.e. CP (IB) No. 515/9/HDB/2019. The Tribunal had previously admitted the petition under Section 9 of the IBC on 20.12.2019, initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor.

## Facts

The SSV Fab Industries Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against SNS Starch Ltd by filing a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The NCLT admitted the petition on 20.12.2019, initiating CIRP and appointing an Interim Resolution Professional (IRP). Subsequently, both parties agreed to settle the dues and executed a Memorandum of Understanding (MoU) on 23.12.2019. The operational creditor filed Form-FA dated 24.12.2019 under Section 12A of I&B Code, 2016 R/w Regulations 30-A(1a) of the Insolvency and Bankruptcy Board of India Regulations, 2016. The IRP then filed an application under Section 12A of the IBC, seeking withdrawal of the CIRP, supported by the settlement agreement and other

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## Issues and analysis

### Issue 1: Whether the Tribunal has the power to permit the withdrawal of the application under Section 12A of …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A of the

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**Reasoning:** The Tribunal reasoned that it has the power under Section 12A of the IBC and Regulation

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**Interpretation:** Section 12A provides a mechanism for withdrawal of CIRP applications based on

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**Application:** In this case, the Tribunal applied Section 12A and Regulation 30A to allow the

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Respondents:** SNS Starc…

## Timeline

- **2019-12-20 — Admission of…**: The Tribunal admitted the petition filed under Section 9 of the IBC, initiating the…
- **2019-12-23 — Memorandum of…**: Both parties agreed to settle the dues and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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