# In the matter of Vishnu Oil Mill Private Limited

> NCLT judgment dated 2024-07-03. Citation: TCN-2024-NCLT-01084. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s Vishnu…

- **Court:** NCLT
- **Order date:** 3 Jul 2024
- **Citation:** TCN-2024-NCLT-01084
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vishnu-oil-mill-private-limited-1a9f23a6

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s Vishnu Oil Mills Pvt. Ltd. The Financial Creditor/Applicant, Mr. Dilip Bafna HUF & Ors., filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Interim Resolution Professional (IRP) was Babu Lal Sharma. The application for withdrawal of the ongoing CIRP was filed based on a settlement between the parties.

## Facts

Mr. Dilip Bafna HUF & Ors., the Financial Creditor/Applicant, initiated a Corporate Insolvency Resolution Process (CIRP) against M/s Vishnu Oil Mills Pvt. Ltd., the Corporate Debtor/Respondent, under Section 7 of the IBC, 2016. Babu Lal Sharma was appointed as the Interim Resolution Professional (IRP). The Financial Creditor and the Corporate Debtor subsequently reached a settlement, with the Financial Creditor receiving the agreed settlement amount. The Financial Creditor then filed an application under Section 12A of the IBC, 2016, read with Regulation 30A of the CIRP Regulations, 2016, seeking withdrawal of the ongoing CIRP. The application was supported by Form F-A dated 15.06.2023 and a Power of Attorney vide Email dated 15.06.2024. The order for CIRP was

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## Issues and analysis

### Issue 1: Whether the ongoing CIRP against M/s Vishnu Oil Mills Pvt. Ltd. should be terminated based on the …

**Ratio:** The CIRP can be terminated if the parties arrive at a settlement and the Financial

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**Reasoning:** The court considered the fact that the Financial Creditor and the Corporate Debtor had

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**Interpretation:** Section 12A of the IBC, 2016, read with Regulation 30A of the CIRP Regulations,

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**Application:** In this case, the Financial Creditor and the Corporate Debtor arrived at a

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Dilip Bafna HUF &…
- **Respondents:** M/s Vishnu Oil…

## Timeline

- **2021-01-01 — CP No. (IB)-98/7/JPR/202…**: Filing of CP No.…
- **2023-06-15 — Form F-A…**: Applicant received a duly…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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