# In the matter of Shri Tubes & Steels Pvt. Ltd.

> NCLT judgment dated 2023-03-09. Citation: TCN-2023-NCLT-04283. The case involves an application (I.A.No.145/2023) filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 9 Mar 2023
- **Citation:** TCN-2023-NCLT-04283
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shri-tubes-steels-pvt-ltd-aea6952f

## Summary

### Background

The case involves an application (I.A.No.145/2023) filed by the Resolution Professional (RP) of M/s. Shri Tubes & Steels Private Limited under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to withdraw the Company Petition (C.P.(IB)No.195/BB/2020). The Company Petition was initially admitted on 2021-03-31 because no resolution plan was submitted. The Committee of Creditors (CoC) directed the RP to file for liquidation. Subsequently, the Promoter and Suspended Director of the Corporate Debtor approached the Financial Creditor with a One Time Settlement (OTS) proposal. The CoC approved the withdrawal of the application filed under Section 7 of the IBC.

## Facts

M/s. Small Industries Development Bank of India filed a Company Petition (C.P.(IB)No.195/BB/2020) against M/s. Shri Tubes & Steels Pvt. Ltd. The petition was admitted on 2021-03-31. No resolution plan was submitted by any prospective resolution applicant. The CoC directed the RP to file an application for liquidation. The RP filed I.A.No.335/2021. The RP also filed applications I.A.No.314/2022 and I.A.No.315/2022 regarding preferential transactions and undervalued transactions. The Promoter and Suspended Director of the Corporate Debtor approached the Financial Creditor with an OTS proposal dated 2023-01-12. The CoC approved the withdrawal of the application filed under Section 7 of the IBC on 2023-02-13. The RP then filed I.A.No.145/2023 seeking to withdraw the

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## Issues and analysis

### Issue 1: Whether the conditions for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

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**Reasoning:** The Adjudicating Authority noted that the CoC had approved the withdrawal of the

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

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**Application:** In this case, the CoC's approval of the withdrawal based on the OTS proposal

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## Parties

- **Judges:** T. Krishn…; Prasanta Kumar…
- **Appellants:** M/s Small…
- **Respondents:** M/s Shri Tubes…

## Timeline

- **2020-01-01 — Company Petiti…**: C.P.(IB)No.195/BB/2020…
- **2021-03-31 — Company Petition…**: The Company Petition was admitted…

## 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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