# In the matter of Sterling SEZ & Infrastructure Ltd. C.P. (IB)-405-MB-2018

> NCLT judgment dated 2019-04-10. Citation: TCN-2019-NCLT-03965. The case involves an application for withdrawal of a Company Petition admitted under Section 7…

- **Court:** NCLT
- **Order date:** 10 Apr 2019
- **Citation:** TCN-2019-NCLT-03965
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sterling-sez-infrastructure-ltd-cp-ib-405-mb-2018-16a6b393

## Summary

### Background

The case involves an application for withdrawal of a Company Petition admitted under Section 7 of the Insolvency and Bankruptcy Code (IBC). The petition was initially admitted on 2018-07-16. The Resolution Professional (RP) filed the application under Section 12A of the IBC, read with Regulation 30A of the IBBI (CIRP) Regulations. The RP received Expression of Interest from 9 investors, but no resolution plan was received. UCO Bank provided a bank guarantee of Rs. 64,22,500/- for unpaid insolvency process costs. The Committee of Creditors (COC) approved the withdrawal with 92.01% voting share.

## Facts

SREI Infrastructure Finance Ltd. initiated corporate insolvency resolution process (CIRP) against Sterling SEZ & Infrastructure Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 2018-07-16. Subsequently, an application was filed by the Resolution Professional (RP) under Section 12A of the IBC, seeking withdrawal of the CIRP. The RP received Expression of Interest from 9 investors, but no resolution plan was received. UCO Bank provided a bank guarantee of Rs. 64,22,500/- for unpaid insolvency process costs. The Committee of Creditors (COC) approved the withdrawal with 92.01% voting share. The members of the suspended Board of Directors were not contactable. The RP was appointed as an Interim Administrator of the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the Insolvency and …

**Ratio:** Regulation 30A (1) of the IBBI (CIRP) Regulations, 2016 is directory in nature, implying

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**Reasoning:** The court reasoned that since Regulation 30A (1) is directory, the absence of a

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**Interpretation:** Section 12A allows withdrawal of application admitted under Section 7, Section

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**Application:** In this case, the COC approved the withdrawal with 92.01% voting share, and the

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Srei Infrastructur…
- **Respondents:** Sterling SEZ &…

## Timeline

- **2018-07-16 — CIRP Admi…**: Company Petition admitted…
- **2019-04-10 — Order Da…**: Order sheet of the hearing of Mumbai Bench…

## 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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