# In the matter of SNS Starch Ltd. IA No. 1214-2020 in CP(IB) No. 685-9-HDB-2019

> NCLT judgment dated 2022-03-22. Citation: TCN-2022-NCLT-03603. The case involves an application (IA No.1214/2020) in a corporate insolvency resolution process…

- **Court:** NCLT
- **Order date:** 22 Mar 2022
- **Citation:** TCN-2022-NCLT-03603
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sns-starch-ltd-ia-no-1214-2020-in-cpib-no-685-9-hdb-2019-15455254

## Summary

### Background

The case involves an application (IA No.1214/2020) in a corporate insolvency resolution process (CIRP) under CP(IB) No.685/9/HDB/2019. The operational creditor, Sri Sai Traders, initiated the CIRP against the corporate debtor, SNS Starch Ltd. The corporate debtor has already been admitted into CIRP under CP(IB) No.663/9/HDB/2019.

## Facts

Sri Sai Traders, the operational creditor, filed CP(IB) No.685/9/HDB/2019 against SNS Starch Ltd, the corporate debtor. The corporate debtor is already undergoing CIRP under CP(IB) No.663/9/HDB/2019, which was admitted on 22.03.2022. The Learned Counsel Shri G.Bupesh appeared for the operational creditor, and Learned Proxy Counsel Ms.Divya appeared for the corporate debtor via video conference. The court directed the operational creditor to approach the Interim Resolution Professional (IRP) and allowed the operational creditor to seek restoration of the petition if the operational creditor in CP No.663/9/HDB/2019 withdraws the said Company Petition under a settlement.

## Issues and analysis

### Issue 1: Whether CP (IB) No.685/9/HDB/2019 should be disposed of, given that the corporate debtor is already …

**Ratio:** When a corporate debtor is already undergoing CIRP, it is generally not appropriate to

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**Reasoning:** The court reasoned that since the corporate debtor is already undergoing CIRP under

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**Interpretation:** This interpretation suggests that multiple CIRP proceedings against the same

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**Application:** The court applied this principle by disposing of CP (IB) No.685/9/HDB/2019

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## Parties

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

## Timeline

- **2022-03-22 — Hearing…**: Hearing held on 22-03-2022 at 10:30…
- **2022-03-22 — Corporate Debtor under…**: 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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