# In the matter of Ankit Traders Through Sole proprietor vs. Supershine Agrofoods Private Limited

> NCLAT judgment dated 2024-02-28. Citation: TCN-2024-NCLAT-00611. The appeal was filed by the Operational Creditor challenging the order dated 21.08.2023, by…

- **Court:** NCLAT
- **Order date:** 28 Feb 2024
- **Citation:** TCN-2024-NCLAT-00611
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ankit-traders-through-sole-proprietor-vs-supershine-agrofoods-private-limited-94f4e49f

## Summary

### Background

The appeal was filed by the Operational Creditor challenging the order dated 21.08.2023, by which the Adjudicating Authority allowed an application under Section 12A, permitting the withdrawal of a Section 9 application. The appellant's grievance is limited to the Adjudicating Authority's failure to grant liberty to re-approach the Adjudicating Authority in the event of a breach of a Memorandum of Understanding (MoU) dated 07.07.2023. The Adjudicating Authority had declined to grant any further liberty to the Applicant to re-approach the Adjudicating Authority for the cause of action against the same Corporate Debtor for the purpose of recovery of its operational dues.

## Facts

Ankit Traders, the Operational Creditor, filed a Section 9 application against Supershine Agrofoods Private Limited, the Corporate Debtor, claiming a default of Rs. 1,85,00,668/- plus interest. During the proceedings, a Memorandum of Understanding (MoU) was entered into between the parties on 07.07.2023. Based on the MoU, the Adjudicating Authority allowed the withdrawal of the Section 9 application under Section 12A. The MoU stipulated that the Corporate Debtor would pay a total amount of Rs. 1,85,00,000/- to the Operational Creditor in full and final settlement. Rs. 50,00,000/- was paid in two installments of Rs. 25,00,000/- each on 30.06.2023. For the remaining amount of Rs. 1,35,00,000/-, it was agreed that the Corporate Debtor would either transfer its rights in a

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in declining to grant liberty to the Operational …

**Ratio:** The principle is that when a settlement agreement is reached between parties in

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**Reasoning:** The court reasoned that the MoU only stated that in view of the agreement between the

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**Interpretation:** The interpretation of the MoU is crucial. The court interpreted the MoU

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**Application:** Applying the ratio to the facts, the court found that the MoU did not contain

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Ankit Traders…
- **Respondents:** Supershine…

## Timeline

- **2021-11-07 — Default…**: Default date from which interest @ 12.75%…
- **2023-06-30 — Payment of Rs.…**: Rs. 50 Lakhs paid in two…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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