# In the matter of Radheshayam Agro Products Pvt. Ltd.

> NCLT judgment dated 2023-10-04. Citation: TCN-2023-NCLT-01400. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated under Section 7 of…

- **Court:** NCLT
- **Order date:** 4 Oct 2023
- **Citation:** TCN-2023-NCLT-01400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/radheshayam-agro-products-pvt-ltd-1600d1f5

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated under Section 7 of the IBC, 2016 against Radheshayam Agro Products Pvt Ltd. by Bank of India. An IRP was initially appointed, followed by a Resolution Professional (RP). The CIRP commencement order was challenged before the NCLAT, which initially set aside the order. However, the Supreme Court quashed the NCLAT's order and directed the parties to appear before the Tribunal, allowing the CIRP to progress. Subsequently, a resolution was passed by the Committee of Creditors (CoC) with 100% majority to withdraw the CIRP application under Section 12A of the IBC, as a One Time Settlement (OTS) proposal had been sanctioned by Bank of India, the sole CoC member, and the full amount of the OTS had been

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## Facts

Bank of India initiated CIRP against Radheshayam Agro Products Pvt Ltd under Section 7 of the IBC, 2016. An IRP and later an RP were appointed. The NCLAT initially set aside the CIRP commencement order, but the Supreme Court reversed this decision. Subsequently, Bank of India, being the sole member of the CoC, approved a One Time Settlement (OTS) proposal and received the full payment. Consequently, the CoC voted with 100% majority to withdraw the CIRP application under Section 12A of the IBC. Form FA, documenting this decision, was voted upon in the 9th CoC meeting. The RP confirmed that all dues, including the cost of CIRP, had been paid. This led to the Tribunal allowing the withdrawal of the CIRP.

## Issues and analysis

### Issue 1: Whether the Tribunal can allow the withdrawal of the CIRP under Section 12A of the IBC, 2016, given …

**Ratio:** Section 12A of the IBC allows for the withdrawal of a CIRP application if the CoC

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**Reasoning:** The court reasoned that since the CoC, in this case, Bank of India, had unanimously

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**Interpretation:** Section 12A provides a mechanism for CIRP withdrawal when the CoC, representing

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**Application:** In this case, the CoC's 100% approval, coupled with the successful OTS and

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Bank of…
- **Respondents:** Radheshayam Agro…

## Timeline

- **2018-01-01 — CP(IB) 459 of 2…**: The main Corporate Insolvency…
- **2019-09-20 — Order under Section 7…**: Order under Section 7 of the IBC, 2016…

## 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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