# In the matter of Shri Veerganapathi Steels Private Limited

> NCLT judgment dated 2023-07-20. Citation: TCN-2023-NCLT-05280. The case involves an application (IA(IBC)/193(CHE)/2023) filed in CP/229/(IB)/2018 under…

- **Court:** NCLT
- **Order date:** 20 Jul 2023
- **Citation:** TCN-2023-NCLT-05280
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/shri-veerganapathi-steels-private-limited-02bf5e50

## Summary

### Background

The case involves an application (IA(IBC)/193(CHE)/2023) filed in CP/229/(IB)/2018 under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking to direct the Liquidator (1st Respondent) to file an application for withdrawal of liquidation proceedings against the Corporate Debtor, Shri Veerganapathi Steels (P) Limited, pursuant to a One Time Settlement (OTS).

## Facts

IA(IBC)/193/2023 was filed seeking to direct the 1st Respondent to file necessary application before the Tribunal for withdrawal of Liquidation proceedings as against the Corporate Debtor pursuant to the OTS.

The Applicant is the erstwhile Promoter Director of Shri Veeraganapathi Steels Pvt. Ltd (Corporate Debtor).

CIRP commenced vide order dated 26.04.2018.

Tribunal vide its order dated 12.04.2019 ordered liquidation of the Corporate Debtor.

The 2nd Respondent had approached the Promoters / Guarantors vide letters dated 07.05.2022 and 12.09.2022 respectively stating that the Promoters / Guarantors of the Corporate Debtor are eligible for OTS under the One Time Settlement Scheme.

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## Issues and analysis

### Issue 1: Whether Section 12A of the IBC can be invoked to withdraw liquidation proceedings after the …

**Ratio:** Section 12A of the IBC is applicable only during the Corporate Insolvency Resolution

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**Reasoning:** The Tribunal noted that Section 12A falls under Chapter II of the IBC, which deals with

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**Interpretation:** The Tribunal interpreted the provisions of the IBC and its regulations to mean

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**Application:** The Tribunal applied this interpretation to the present case, noting that the

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** Narayan Mah…
- **Respondents:** Veerganapathi…; Kavitha S…; +1 more
- **Advocates:** T.K. Bh…; S. Sathiyanarayana…

## Timeline

- **2018-04-26 — CIRP Comm…**: Corporate Insolvency Resolution Process…
- **2019-04-12 — Liquidation…**: Tribunal ordered liquidation of the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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