# In the matter of Mrunmaha Agro Foods Private Limited

> NCLT judgment dated 2024-06-28. Citation: TCN-2024-NCLT-01107. The case involves an application (I.A. 366/2024) filed by the liquidator under Section 12A of…

- **Court:** NCLT
- **Order date:** 28 Jun 2024
- **Citation:** TCN-2024-NCLT-01107
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mrunmaha-agro-foods-private-limited-d0d0373e

## Summary

### Background

The case involves an application (I.A. 366/2024) filed by the liquidator under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the company petition (C.P. No. (IB) 1569/MB/C-III/2017) during the liquidation period. The Corporate Insolvency Resolution Process (CIRP) had commenced against Mrunmaha Agro Foods Pvt. Ltd. on 20.11.2018, and a liquidator was appointed on 22.05.2020 after the resolution plan was not approved by the Committee of Creditors (CoC). E-auctions were conducted to sell the assets of the corporate debtor, but they were unsuccessful. An OTS (One-Time Settlement) proposal was received from the promoters of the corporate debtor and approved by the Stakeholders Consultation Committee (SCC).

## Facts

On 20.11.2018, CIRP was initiated against Mrunmaha Agro Foods Pvt. Ltd. A liquidator was appointed on 22.05.2020 after the resolution plan failed. The liquidator conducted multiple e-auctions to sell the corporate debtor's assets, but none were successful. The Stakeholders Consultation Committee (SCC) consists of Union Bank of India (94% voting share) and Fairmacs Shipping & Transport Services Pvt. Ltd. (6% voting share). An OTS proposal was received from the promoters of the corporate debtor. The SCC approved the OTS proposal on 07.09.2023. Union Bank of India, the secured financial creditor, approved the resolution for accepting the OTS proposal under Section 230 of the Companies Act, 2013. The OTS proposal involved a payment of Rs. 6.30 crores to the secured

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## Issues and analysis

### Issue 1: Whether the tribunal can allow the withdrawal of a company petition during the liquidation period …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

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**Reasoning:** The tribunal considered that there is no specific provision under the IBC for withdrawal

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**Interpretation:** Section 12A is interpreted to allow for flexibility in insolvency proceedings,

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**Application:** In this case, the OTS proposal was approved by the sole financial creditor,

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Fanendra H…
- **Respondents:** MRUNMAHA AGRO…

## Timeline

- **2017-01-01 — Company Pe…**: C.P. No. (IB)…
- **2018-11-20 — CIRP Commen…**: Application for commencement of CIRP against Corporate Debtor was admitted and public…

## 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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