# In the matter of SNS Starch Limited

> NCLT judgment dated 2023-05-22. Citation: TCN-2023-NCLT-03237. The Resolution Professional filed an application (IA 780/2023) under Section 12A of the IBC…

- **Court:** NCLT
- **Order date:** 22 May 2023
- **Citation:** TCN-2023-NCLT-03237
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sns-starch-limited-ac2f9666

## Summary

### Background

The Resolution Professional filed an application (IA 780/2023) under Section 12A of the IBC seeking the Tribunal's permission to withdraw the Company Petition. The basis for the withdrawal is that the Corporate Debtor has settled the matter with the Operational Creditor.

## Facts

Sri Lakshmi Venkateshwara Traders, the Operational Creditor, initiated a Company Petition (IB/53/2021) against SNS Starch Limited, the Corporate Debtor. The Resolution Professional filed IA 780/2023 seeking to withdraw the Company Petition under Section 12A of the IBC, because the Corporate Debtor and Operational Creditor settled the matter. The settlement deed is dated 2023-05-09. The petition was accompanied by a photocopy of the Demand Drafts. Form FA dated 2023-05-10 was also submitted. The CIRP order passed in the Company Petition dated 2023-05-01 was vacated, and the interim moratorium was lifted.

## Issues and analysis

### Issue 1: Whether the Tribunal should allow the withdrawal of the Company Petition based on the settlement …

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

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**Reasoning:** The Corporate Debtor and Operational Creditor have settled the matter. The Resolution

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**Interpretation:** Section 12A provides a mechanism for settling disputes between the parties and

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**Application:** The Tribunal applied Section 12A, considering the settlement between the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Lakshmi Venkateswa…
- **Respondents:** SNS Starch…

## Timeline

- **2023-05-01 — CIRP Order…**: CIRP order was passed in…
- **2023-05-09 — Settlemen…**: Original deed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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