Allowed

In the matter of Shri Tubes & Steels Pvt. Ltd. [I.A.Nos.335-2021, 314, 315-2022 & 145-2023 in C.P.(IB)No.195-BB-2020]

NCLT9 Mar 2023I.A.Nos.335-2021, 314, 315-2022 & 145-2023 in C.P.(IB)No.195-BB-2020

Case brief

AI extract

What is this about?

NCLT Bengaluru Special Bench allowed the Resolution Professional's application to vacate the Corporate Petition under Section 12A IBC 2016 following the CoC approval of withdrawing the CIRP application. The court discharged the RP, handed control to suspended directors, and ceased the moratorium.

What did the court decide?

CIRP vacated, RP discharged, control returned to suspended directors, moratorium ceased.

In the matter of Shri Tubes & Steels Pvt. Ltd… — Insolvency and Bankruptcy | NCLT (2023)

¶1

IN THE NATIONAL COMPANY LAW TRIBUNAL SPECIAL BENCH, BENGALURU (Through web-based video conferencing platform)

¶2

ITEM No.07 I.A.Nos.335/2021, 314, 315/2022 & 145/2023 in C.P.(IB)No.195/BB/2020

¶3

IN THE MATTER OF:

¶4

M/s. Small Industries Development Bank of India … Vs.

¶5

Petitioner

¶6

M/s. Shri Tubes & Steels Pvt. Ltd.

¶7

… Respondent

¶8

Order under Section 7 of IBC, 2016

¶9

Order delivered on 09.03.2023

¶10

CORAM:

¶11

JUSTICE (RETD.) T. KRISHNAVALLI HON’BLE MEMBER (JUDICIAL)

¶12

SH. PRASANTA KUMAR MOHANTY HON’BLE MEMBER (TECHNICAL)

¶13

PRESENT:

¶14

For the RP : Shri Susheel Shankar

¶15

ORDER

¶16

I.A.No.145/2023:

¶17

Heard Shri Susheel Shankar, learned Counsel appearing for the Resolution Professional.

¶18

The present Application has been filed by Shri Srinivas Thatikonda, Resolution Professional of M/s. Shri Tubes & Steels Private Limited (hereinafter as ‘Applicant’) under Section 12A of the Code seeking to allow the instant Application by disposing off the instant Petition in C.P.(IB)No.195/BB/2020 along with all other pending IA’s in the instant Petition.

¶19

The learned Counsel for the RP submits that the Company Petition was admitted by this Adjudicating Authority vide Order dated 31.03.2021 in C.P.(IB)No.195/BB/2020. Since no Resolution Plan was submitted by any of the Prospective Resolution Applicant the CoC in its 6^th meeting dated 22.09.2021 had directed the RP to file an Application for liquidation of the Corporate Debtor, U/s. 30(2) of the IBC, 2016 which

¶20

:2:

¶21

came to be numbered as I.A.No.335/2021. Subsequently, upon confirmation of the knowledge of the Preferential Transactions and Undervalued Transactions commissioned by the Suspended Directors of the Corporate Debtor, the Applicant also filed an Application U/s. 43(1) of the IBC, 2016 which was numbered as I.A.No.314/2022 and another Application for avoidance of Preferential Transactions U/s.45 of the IBC, 2016 which was numbered as I.A.No.315/2022. However, during the pendency of the aforementioned Applications, the Promoter and Suspended Director of the Corporate Debtor had approached the Financial Creditor with One Time Settlement proposal in concurrence to the OTS Letter dated 12.01.2023.

¶22

Upon deliberation on above proposal, the CoC in its 7^th meeting held on 13.02.2023 has unanimously approved the resolution with regard to the withdrawal of the Application filed U/s.7 of the IBC. A copy of the said resolution is attached as Annexure-5 of the Application.

¶23

Since the conditions for withdrawal of CIRP U/s.12A of the Code have been satisfied, this Adjudicating Authority has no objection for withdrawal of this Petition. Therefore, the instant Application is hereby allowed.

¶24

Consequently, the Corporate Debtor is hereby released from the rigours of CIRP and the RP so appointed, is directed to handover the charge of the assets and affairs of the Corporate Debtor back to the Suspended Members of the Board of Directors of Corporate Debtor. Subsequently, RP is discharged from his duties of the Corporate Debtor, and moratorium shall be ceased to have effect, from the date of this order.

¶25

Accordingly, I.A.No.145 of 2023 stands disposed of as withdrawn and consequently, the Petition bearing C.P.(IB)No.195/BB/2020 stands closed along with pending I.As, if any.

¶26

-Sd-SdPRASANTA KUMAR MOHANTY T. KRISHNAVALLI MEMBER (TECHNICAL) MEMBER (JUDICIAL)

¶27

Shruthi

In the matter of Shri Tubes & Steels Pvt. Ltd. [I.A.Nos.335-2021, 314, 315-2022 & 145-2023 in C.P.(IB)No.195-BB-2020]

Case brief

What is this about?

What did the court decide?

In the matter of Shri Tubes & Steels Pvt. Ltd. [I.A.Nos.335-2021, 314, 315-2022 & 145-2023 in C.P.(IB)No.195-BB-2020]

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases