# 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-02224. 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-02224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/limtex-agri-udyog-limited-iaib-464kb2021-in-cpib-1496kb-2018-f681d285

## 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 IBBI 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).

## Facts

Phoenix ARC Private Limited initiated CIRP against Limtex Agri Udyog Limited. The Adjudicating Authority admitted the petition on 2020-02-26. Public announcement was made inviting claims. Phoenix ARC Private Limited assigned its debt to CFM Asset Reconstruction Private Limited on 2021-02-15. The RP reconstituted the CoC. Three claims were received from Financial Creditors: CFM Asset Reconstruction Private Limited, UCO Bank, and South Indian Bank Limited. CFM Asset Reconstruction Private Limited held 98.99% voting rights. Five claims were received from Operational Creditors, with three providing 'No Objection Certificates' for CIRP withdrawal. The Commissioner of Commercial Taxes' claim of Rs.4.07 crore was not admitted due to a pending appeal, and the Deputy

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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 Adjudicating Authority considered the submissions of the RP and the fact that the

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

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**Application:** In this case, the resolution for withdrawal was passed with 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…
- **2020-03-05 — Public Annou…**: Public announcement inviting claims was made in Form A in 'Business Standard' and…

## 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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