# In the matter of URBAN FARMART INDIA PRIVATE LIMITED

> NCLT judgment dated 2025-05-14. Citation: TCN-2025-NCLT-00073. The case pertains to an application filed by the Resolution Professional (RP) of Urban Farmart…

- **Court:** NCLT
- **Order date:** 14 May 2025
- **Citation:** TCN-2025-NCLT-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/urban-farmart-india-private-limited-38c183d8

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) of Urban Farmart India Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an order for the liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition filed by Urban Farmart India Private Limited under Section 10 of the IBC. An Interim Resolution Professional (IRP) was appointed, who was later confirmed as the Resolution Professional. Public announcements were made inviting claims from creditors. The Committee of Creditors (CoC) was constituted, and meetings were held to explore the possibility of reviving the Corporate Applicant. A Forensic Auditor was also appointed.

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## Facts

Urban Farmart India Private Limited underwent a Corporate Insolvency Resolution Process (CIRP) after a petition was admitted under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. Manjeet Bucha was appointed as the Resolution Professional (RP). Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was formed, consisting of Employees State Insurance Corporation Hyderabad, Heritage Foods Limited Hyderabad, and Creamline Diary Products Limited. The CoC convened meetings to explore the possibility of reviving the company. Registered valuers were to be appointed to determine the fair value and liquidation value of the assets. A forensic audit was initiated to examine potential avoidance transactions. However, the

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional under Section 33(2) of the IBC for …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Resolution

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 33(2) of the IBC, which

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**Interpretation:** Section 33(2) provides a mechanism for the CoC to opt for liquidation when

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**Application:** The application was deemed maintainable as the CoC had resolved to liquidate

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## Parties

- **Judges:** Rammurti Ku…; SH. CHARAN…
- **Appellants:** M/s. Urban…
- **Respondents:** Urban Farmart…

## Timeline

- **2024-11-05 — Admission of…**: The Tribunal admitted the petition filed by Urban Farmart India Private Limited under…
- **2024-11-07 — Public Annou…**: Public announcement in Financial Express (English) and Nava Telangana (Telugu) intimating…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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