# In the matter of Himadri Foods Ltd. Vs. Credit Suisse Funds AG CA (AT) (Ins) No. 1060 of 2020

> NCLAT judgment dated 2021-01-07. Citation: TCN-2021-NCLAT-00418. The case involves an appeal against an order by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 7 Jan 2021
- **Citation:** TCN-2021-NCLAT-00418
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/himadri-foods-ltd-vs-credit-suisse-funds-ag-ca-08798a38

## Summary

### Background

The case involves an appeal against an order by the Adjudicating Authority (National Company Law Tribunal) that allowed the restoration of a Company Petition. The original Company Petition was disposed of based on a settlement between the parties. The appeal was filed by one of the erstwhile Directors, arguing that the revival should not have been allowed under Rule 11 of the NCLT Rules, 2016.

## Facts

A Company Petition was initially disposed of by the Adjudicating Authority based on a settlement between the parties. An application was filed seeking restoration/revival of the Company Petition. The Adjudicating Authority allowed the restoration. One of the former Directors appealed this decision, arguing it violated NCLT rules. Subsequently, an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by an Operational Creditor against the same Corporate Debtor, was admitted, and CIRP commenced. The Financial Creditor had been given liberty to report any non-compliance with the settlement terms.

## Issues and analysis

### Issue 1: Whether the restoration of the Company Petition by the Adjudicating Authority was justified given …

**Ratio:** The principle is that if a Corporate Insolvency Resolution Process (CIRP) has commenced

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**Reasoning:** The court reasoned that the commencement of CIRP by another creditor fundamentally alters

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**Interpretation:** The interpretation is that the initiation of CIRP takes precedence over

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**Application:** In this case, the commencement of CIRP by an Operational Creditor against the

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Appellants:** Himadri Foo…
- **Respondents:** Credit Suisse…
- **Advocates:** Amey Ha…; Amir Ars…; +8 more

## Timeline

- **2019-08-29 — Order by Adjudicating…**: The Adjudicating Authority passed an order disposing of the Company Petition after…
- **2019-01-01 — MA No. 3601…**: An application being MA No. 3601 of 2019 was moved seeking restoration/ revival of the…

## 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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