# In the matter of Steamax Envirocare Pvt. Ltd. CA.783-ND-2020 in (IB)-240-ND-2019

> NCLT judgment dated 2020-01-30. Citation: TCN-2020-NCLT-02134. CA No. 783/ND/2020 was filed by the Operational Creditor seeking termination of the CIR…

- **Court:** NCLT
- **Order date:** 30 Jan 2020
- **Citation:** TCN-2020-NCLT-02134
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/steamax-envirocare-pvt-ltd-ca783-nd-2020-in-ib-240-nd-2019-a5691bb8

## Summary

### Background

CA No. 783/ND/2020 was filed by the Operational Creditor seeking termination of the CIR process. The Hon'ble NCLAT directed that the IRP should not take steps for publication or constitute the COC. The Operational Creditor's claim has been settled, and they are filing for termination of the COC. The application has been filed through the IRP, and the affidavit of IRP and Form 'FA' are also filed.

## Facts

Mr. Akash Agarwal Tirupati Green Energies Pvt. Ltd. filed an application (CA No. 783/ND/2020) as an Operational Creditor seeking the termination of the Corporate Insolvency Resolution Process (CIRP) against Steamax Envirocare Pvt. Ltd. The application was based on the settlement of the Operational Creditor's claim. The Hon'ble NCLAT had previously directed that the IRP should not take steps for publication or constitute the Committee of Creditors (COC). The IRP also filed an affidavit and Form 'FA'. No COC had been constituted, and CIRP proceedings had not yet commenced. The IRP's claim has been settled.

## Issues and analysis

### Issue 1: Whether the CIR process should be terminated given the settlement of the Operational Creditor's …

**Ratio:** The CIR process can be terminated if the Operational Creditor's claim has been settled,

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**Reasoning:** The court reasoned that since the Operational Creditor's claim had been settled, no COC

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**Interpretation:** This interpretation allows for the termination of CIRP when the underlying debt

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**Application:** The court applied this principle to the specific facts, noting that the

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## Parties

- **Judges:** Ina Mal…; HEMANT KUMAR…
- **Appellants:** Akash Agarwal…
- **Respondents:** Steamax Envirocare…
- **Advocates:** Avtaar…; Ayush Upa…; +3 more

## Timeline

- **2020-01-30 — Order Del…**: Order delivered on 30.01.2020…

## 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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