# In the matter of SNS Starch Ltd. Company Petition IB-53-2021

> NCLT judgment dated 2022-03-22. Citation: TCN-2022-NCLT-03610. Company Petition IB/53/2021 was filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 22 Mar 2022
- **Citation:** TCN-2022-NCLT-03610
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sns-starch-ltd-company-petition-ib-53-2021-ea019788

## Summary

### Background

Company Petition IB/53/2021 was filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The matter concerns Sri Lakshmi Venkateswara Traders as the Operational Creditor and SNS Starch Ltd as the Corporate Debtor. The Corporate Debtor has been put into Corporate Insolvency Resolution Process (CIRP) in CP (IB) No.663/9/HDB/2019.

## Facts

Sri Lakshmi Venkateswara Traders filed a Company Petition (IB/53/2021) against SNS Starch Ltd under Section 9 of the IBC, 2016. SNS Starch Ltd, the Corporate Debtor, is already undergoing Corporate Insolvency Resolution Process (CIRP) under CP (IB) No.663/9/HDB/2019. The operational creditor was not represented in the hearing. The court directed the operational creditor's counsel to approach the Interim Resolution Professional (IRP). The court disposed of the petition with the liberty to the operational creditor to seek restoration of the petition if the company petition is withdrawn under a settlement.

## Issues and analysis

### Issue 1: Whether CP (IB) No.53/9/HDB/2021 should be disposed of given that the corporate debtor is already …

**Ratio:** When a corporate debtor is already undergoing CIRP, any new petition for initiation of

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**Reasoning:** The court considered the fact that the corporate debtor was already undergoing CIRP under

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**Interpretation:** The court interpreted the provisions of IBC to allow for the disposal of a

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**Application:** The court applied the ratio to the facts by disposing of the petition but

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Lakshmi Venkateswa…
- **Respondents:** SNS Starc…

## Timeline

- **2022-03-22 — Hearing…**: Hearing held on 22-03-2022 at 10:30…
- **2019-01-01 — CIRP Init…**: Corporate debtor put into CIRP in CP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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