# In the matter of Mansi Oils & Grains Pvt. Ltd. C.A. (IB) No. 668-KB-2019 in C.P. (IB) No. 1042-KB-2018

> NCLT judgment dated 2019-07-19. Citation: TCN-2019-NCLT-02404. United Bank of India, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 19 Jul 2019
- **Citation:** TCN-2019-NCLT-02404
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mansi-oils-grains-pvt-ltd-ca-ib-no-668-kb-2019-in-cp-ib-no-1042-kb-2018-0bd87e07

## Summary

### Background

United Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Mansi Oils & Grains Pvt. Ltd., the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor defaulted in paying a financial debt of Rs. 34,87,17,235/-. The Adjudicating Authority admitted the Corporate Debtor into CIRP on 01.01.2019 and appointed Rachna Jhunjhunwala as the Interim Resolution Professional (IRP). The IRP made a public announcement of the CIRP on 04.01.2019.

## Facts

United Bank of India, as the Financial Creditor, initiated CIRP against Mansi Oils & Grains Pvt. Ltd., the Corporate Debtor, due to a default of Rs. 34,87,17,235/-. The Adjudicating Authority admitted the application on 01.01.2019 and appointed Rachna Jhunjhunwala as the IRP. The CoC comprised United Bank of India (54.68% voting share) and NABARD (45.32% voting share). Despite efforts, no resolution plan was received within the CIRP period. A director of the Corporate Debtor attempted to set aside the CIRP, but the application was rejected. The CoC voted for liquidation, leading the Adjudicating Authority to order the liquidation of the Corporate Debtor and appoint Rachna Jhunjhunwala as the liquidator. The key fact is the failure to find a resolution plan, leading

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Mansi Oils & Grains Pvt. Ltd., should be liquidated due to the …

**Ratio:** When the CIRP process fails to produce a viable resolution plan within the stipulated

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**Reasoning:** The Committee of Creditors (CoC) did not receive any resolution plan despite the

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**Interpretation:** The Insolvency and Bankruptcy Code (IBC) provides a framework for resolving the

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**Application:** In this case, the CIRP process failed to produce a resolution plan within the

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## Parties

- **Judges:** Madan B.…
- **Appellants:** United Bank of…
- **Respondents:** Mansi Oils &…

## Timeline

- **2019-01-01 — Admission in…**: Adjudicating Authority admitted…
- **2019-01-04 — Public Announcement of…**: IRP made public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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