# 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-03618. 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-03618
- **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-a549743f

## Summary

### Background

The case involves an application (IA No.1214/2020) in a corporate insolvency resolution process (CIRP) initiated under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The CIRP was filed by Sri Sai Traders, the operational creditor, against SNS Starch Ltd, the corporate debtor. 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, under Section 9 of the IBC, 2016. 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 for the operational creditor is directed to approach the Interim Resolution Professional (IRP). The court disposed of CP (IB) No.685/9/HDB/2019, granting the operational creditor the liberty to seek restoration of the petition if the operational creditor in CP No.663/9/HDB/2019 withdraws the company petition under a settlement.

## Issues and analysis

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

**Ratio:** When a corporate debtor is already undergoing CIRP, subsequent applications for

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**Reasoning:** The court reasoned that since the corporate debtor was already undergoing CIRP, it was

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**Interpretation:** This interpretation ensures that the CIRP process is streamlined and avoids

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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 Debto…**: 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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