# In the matter of SGM Steels Pvt. Ltd. IB-815-ND-2021

> NCLT judgment dated 2022-09-05. Citation: TCN-2022-NCLT-01164. The case involves an application filed by the Resolution Professional (RP) under Section 12A of…

- **Court:** NCLT
- **Order date:** 5 Sept 2022
- **Citation:** TCN-2022-NCLT-01164
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sgm-steels-pvt-ltd-ib-815-nd-2021-afd44584

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 12A of the Insolvency and Bankruptcy Code (IB Code), 2016, read with Regulation 30A(5) of the IBBI (IRP for CP) Regulations, 2016, and Rule 11 of NCLT Rules, 2016, seeking withdrawal of the Company Petition along with a supporting affidavit. The Committee of Creditors (CoC) had resolved to propose the withdrawal of the Corporate Insolvency Resolution Process (CIRP) concerning SGM Steels Private Limited. The application for withdrawal was based on a settlement between the Financial Creditor and the Corporate Debtor.

## Facts

M/s. PAS Enterprise filed a petition against M/s. SGM Steels Pvt. Ltd. under Section 7 of the IB Code, 2016. The Resolution Professional (RP) filed an application (IA/4230/2022) under Section 12A of the IB Code, 2016, seeking withdrawal of the Company Petition. This withdrawal request was supported by Regulation 30A(5) of the IBBI (IRP for CP) Regulations, 2016, and Rule 11 of NCLT Rules, 2016. The Committee of Creditors (CoC) had resolved to propose the withdrawal of the CIRP in respect of SGM Steels Private Limited. The withdrawal was based on a settlement between the Financial Creditor and the Corporate Debtor. The RP was authorized to refund the earnest money deposits. The RP, Mr. Akhil Ahuja, confirmed that all fees and expenses had been paid.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Company Petition under Section 12A of the IB Code, …

**Ratio:** Section 12A of the IB Code, 2016, read with Regulation 30A of the CIRP Regulations, 2016,

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**Reasoning:** The court considered the submissions made by the Learned Counsel for the RP and reviewed

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**Interpretation:** Section 12A provides a mechanism for withdrawing a CIRP application when a

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**Application:** The court applied Section 12A and Regulation 30A to the facts of the case,

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** M/S PAS ENT…
- **Respondents:** M/s. SGM Steels…

## Timeline

- **2022-05-09 — Order Del…**: Order delivered on 05.09.2022 regarding…

## 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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