# In the matter of SNS Starch Ltd. IA No. 1217-2020 in CP(IB) No. 689-9-HDB-2019

> NCLT judgment dated 2022-03-22. Citation: TCN-2022-NCLT-03622. The case involves an application, IA No.1217/2020, in connection with CP(IB) No.689/9/HDB/2019…

- **Court:** NCLT
- **Order date:** 22 Mar 2022
- **Citation:** TCN-2022-NCLT-03622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sns-starch-ltd-ia-no-1217-2020-in-cpib-no-689-9-hdb-2019-c08a102c

## Summary

### Background

The case involves an application, IA No.1217/2020, in connection with CP(IB) No.689/9/HDB/2019 under Section 9 of the IBC, 2016. The matter concerns Vardhan Traders, the Operational Creditor, and SNS Starch Ltd, the Corporate Debtor. The corporate debtor has been put into CIRP in CP (IB) No.663/9/HDB/2019.

## Facts

Vardhan Traders is the Operational Creditor in CP(IB) No.689/9/HDB/2019 against SNS Starch Ltd, the Corporate Debtor. The Corporate Debtor has already been admitted into CIRP under CP (IB) No.663/9/HDB/2019 on 22.03.2022. The Learned Counsel for the Operational Creditor is directed to approach the Interim Resolution Professional (IRP). The current petition, CP (IB) No.689/9/HDB/2019, is disposed of with the liberty to the operational creditor to seek restoration if the operational creditor in CP No.663/9/HDB/2019 withdraws the said Company Petition under a settlement. This fact is relevant because it links the outcome of the current petition to the resolution of another CIRP proceeding involving the same corporate debtor.

## Issues and analysis

### Issue 1: Whether CP (IB) No.689/9/HDB/2019 should be disposed of given that the Corporate Debtor is already …

**Ratio:** When a corporate debtor is already undergoing CIRP under one application, subsequent

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

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**Interpretation:** This interprets the IBC to prevent multiple, simultaneous CIRP proceedings

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**Application:** The court applied this principle by disposing of CP (IB) No.689/9/HDB/2019

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## Parties

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

## Timeline

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