# In the matter of SAFECO Hygiene Films Pvt. Ltd. A No. 1057-NCLT-AHM-2023 in CP(IB) No. 96-NCLT-AHM-2021]

> NCLT judgment dated 2023-10-16. Citation: TCN-2023-NCLT-01191. This case involves an application by Union Bank of India, a member of the Committee of…

- **Court:** NCLT
- **Order date:** 16 Oct 2023
- **Citation:** TCN-2023-NCLT-01191
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/safeco-hygiene-films-pvt-ltd-a-no-1057-nclt-ahm-2023-in-cpib-no-96-nclt-ahm-2021-2330ebf3

## Summary

### Background

This case involves an application by Union Bank of India, a member of the Committee of Creditors (CoC) and the sole secured financial creditor of Safeco Hygiene Films Private Limited, under Sections 33(4), 34, 74(3), and 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking to revoke a resolution plan that was previously approved on July 31, 2023. The Corporate Debtor, Safeco Hygiene Films Pvt. Ltd., was admitted into the Corporate Insolvency Resolution Process (CIRP) on August 1, 2022. The CoC initially consisted of Ayodhya Orchard LLP and Union Bank of India, later reconstituted to include Mercedes-Benz Financial Ltd. The resolution plan was approved with 100% majority by the CoC.

## Facts

Union Bank of India, as the sole secured financial creditor of Safeco Hygiene Films Private Limited, filed an application to revoke the resolution plan approved on July 31, 2023. The Corporate Debtor was admitted into CIRP on August 1, 2022. The CoC initially comprised Ayodhya Orchard LLP and Union Bank of India, later including Mercedes-Benz Financial Ltd. The resolution plan was approved with 100% majority. The successful Resolution Applicant was to infuse Rs. 38,12,19,175 plus IRP costs. The applicant, Union Bank of India, then sought to withdraw their application, stating they had received the proposed amount from the Resolution Applicant. The Tribunal noted that within 50 days of the resolution plan's approval, the applicant moved an application for liquidation

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of IA No. 1057 / NCLT / AHM / 2023 IN CP(IB) No. 96 / NCLT / …

**Ratio:** The Tribunal has the discretion to allow the withdrawal of an application if it deems

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**Reasoning:** The applicant stated they received the proposed amount from the Resolution Applicant as

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**Interpretation:** The Tribunal interprets the applicant's willingness to withdraw as a sign that

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**Application:** The Tribunal allowed the withdrawal of the application, recognizing the

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Union Bank of…
- **Respondents:** SAFECO Hygiene…; Jaydeep Mah…

## Timeline

- **2022-08-01 — Admission in…**: The Corporate Debtor, Safeco Hygiene Films Pvt. Ltd., was admitted into the Corporate…
- **2023-07-31 — Resolution Plan…**: The Resolution Plan was approved in the matter of Ayodhya Orchard LLP vs. M/s Safeco…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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