# In the matter of Limtex Agri Udyog Limited IA(IB)-464(KB)2021 In CP(IB)-1496(KB)-2018

> NCLT judgment dated 2021-05-03. Citation: TCN-2021-NCLT-02218. The case involves an application (IA(IB)/464(KB)2021) filed by CFM Asset Reconstruction Private…

- **Court:** NCLT
- **Order date:** 3 May 2021
- **Citation:** TCN-2021-NCLT-02218
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/limtex-agri-udyog-limited-iaib-464kb2021-in-cpib-1496kb-2018-d22b2178

## Summary

### Background

The case involves an application (IA(IB)/464(KB)2021) filed by CFM Asset Reconstruction Private Limited, the Financial Creditor, under Section 12A of the Insolvency and Bankruptcy Code, 2016, read with regulation 30(A)(1)(b) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor, Limtex Agri Udyog Limited. The Adjudicating Authority had admitted the petition against the Corporate Debtor on 26/02/2020. Phoenix ARC Private Limited had assigned its debt to CFM Asset Reconstruction Private Limited on 15/02/2021. The Resolution Professional (RP) reconstituted the Committee of Creditors (CoC) and filed a report for such reconstitution.

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## Facts

On 26/02/2020, the Adjudicating Authority admitted a petition against Limtex Agri Udyog Limited, the Corporate Debtor, initiating CIRP. Public announcements were made to invite claims from creditors. Phoenix ARC Private Limited, the original Financial Creditor, assigned its debt to CFM Asset Reconstruction Private Limited on 15/02/2021. CFM Asset Reconstruction Private Limited then filed an application (IA(IB)/464(KB)2021) under Section 12A of the IBC seeking withdrawal of the CIRP. The RP reconstituted the CoC, which included CFM Asset Reconstruction Private Limited (98.99% voting share), UCO Bank (0.37% voting share), and South Indian Bank Limited (0.64% voting share). Five claims were received from Operational Creditors, with three providing 'No Objection

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of the Insolvency and Bankruptcy …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of

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**Reasoning:** The CoC approved the resolution for withdrawal of CIRP with a 99.36% majority, which

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**Interpretation:** Section 12A provides a mechanism for creditors to withdraw CIRP if a settlement

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**Application:** In this case, the CoC approved the withdrawal with a 99.36% majority,

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Phoenix Arc…
- **Respondents:** Limtex Agri Udyog…

## Timeline

- **2020-02-26 — Admission of…**: The Adjudicating Authority admitted the petition against the Corporate Debtor, initiating…
- **2020-03-05 — Public Annou…**: Public announcement inviting claims was made in Form A in 'Business Standard' (English)…

## 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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