# In the matter of Mercator Petroleum Limited

> NCLT judgment dated 2023-11-02. Citation: TCN-2023-NCLT-00864. The case involves an application filed by Bank of Baroda, a financial creditor of Mercator…

- **Court:** NCLT
- **Order date:** 2 Nov 2023
- **Citation:** TCN-2023-NCLT-00864
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mercator-petroleum-limited-192ab607

## Summary

### Background

The case involves an application filed by Bank of Baroda, a financial creditor of Mercator Petroleum Limited (the Corporate Debtor), against UTI Structured Debt Opportunities Fund-I (UTI), another financial creditor holding a majority voting share (68.20%) in the Committee of Creditors (CoC). Bank of Baroda sought to restrain UTI from abusing its majority voting share and alleged malafide acts by UTI in the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was admitted into CIRP on August 31, 2020. The applicant challenged UTI's resolutions, and the matter was sub-judice. UTI filed a claim in the CIRP as a beneficiary of a corporate guarantee issued by the Corporate Debtor. Bank of Baroda alleged that UTI failed to disclose recoveries made from

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## Facts

Mercator Petroleum Limited is the Corporate Debtor. Bank of Baroda, holding 31.80% voting share in the CoC, filed an application against UTI Structured Debt Opportunities Fund-I, which holds 68.20% voting share. The Corporate Debtor was admitted into CIRP on August 31, 2020. UTI filed a claim as a beneficiary of a corporate guarantee. Bank of Baroda alleged UTI failed to disclose recoveries. UTI sought to replace the Resolution Professional. Bank of Baroda filed several interlocutory applications. Bank of Baroda and UTI reached a commercial understanding to distribute the proceeds from the resolution plan in a 60:40 ratio. A resolution plan was approved by both parties and is pending approval by the Adjudicating Authority. The applicant agreed to withdraw certain

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## Issues and analysis

### Issue 1: Whether the Interlocutory Application No.3233 of 2022 should be dismissed as infructuous due to the …

**Ratio:** When parties to a dispute mutually resolve their differences and a resolution plan is

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**Reasoning:** The court reasoned that the CoC meeting had already taken place, and the resolution plan

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**Interpretation:** This interpretation emphasizes the importance of mutual agreements and

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**Application:** In this case, the court applied the ratio by noting that the Applicant and the

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## Parties

- **Judges:** ANURADHA SANJAY…; Kuldip Kumar…
- **Appellants:** Bank of B…
- **Respondents:** Mercator Petroleum…; UTI Structured…

## Timeline

- **2019-01-01 — CP(IBC)No. 3434/MB/C-V/2…**: Filing of the Company…
- **2020-08-31 — Admission in…**: Corporate Debtor admitted to Corporate…

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