# In the matter of Sterling Developers Pvt. Ltd. C.P. (IB) No. 25-BB-2020

> NCLT judgment dated 2021-03-18. Citation: TCN-2021-NCLT-02650. M/s Urban Infrastructure Trustee Ltd. filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 18 Mar 2021
- **Citation:** TCN-2021-NCLT-02650
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sterling-developers-pvt-ltd-cp-ib-no-25-bb-2020-b5f4ac75

## Summary

### Background

M/s Urban Infrastructure Trustee Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Sterling Developers Pvt. Ltd. The petition was filed due to a default of Rs. 1,21,59,00,000 along with interest. The case was listed for admission on multiple dates and adjourned at the request of the parties.

## Facts

M/s Urban Infrastructure Trustee Ltd. (the 'Petitioner/Financial Creditor') filed C.P. (IB)No.25/BB/2020 under Section 7 of the IBC, 2016, against M/s. Sterling Developers Pvt. Ltd. (the 'Corporate Debtor/Respondent'). The petition was based on a default of Rs. 1,21,59,00,000 plus interest. The case was listed on multiple dates and adjourned. Subsequently, both parties filed a compromise petition dated 2021-03-17, wherein the petitioner agreed to receive Rs. 70.42 crores from the respondent in full settlement. The court disposed of the petition as withdrawn, granting liberty to the petitioner to file a fresh petition if the respondent defaults on the settlement terms. The key fact is the settlement agreement reached between the parties, leading to the withdrawal of the

…

## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the IBC should be admitted for initiating CIRP …

**Ratio:** The Adjudicating Authority has the discretion to admit or reject a petition under Section

…

**Reasoning:** The court did not make a determination on the admissibility of the petition because the

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** In this case, the court did not apply the ratio for admission because the

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s Urban…
- **Respondents:** M/s Sterling…

## Timeline

- **2020-01-22 — Case Listed for…**: The case was initially…
- **2020-02-10 — Case Listed for…**: The case was listed for…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/sterling-developers-pvt-ltd-cp-ib-no-25-bb-2020-b5f4ac75