NCLT Chandigarh Allows Withdrawal of Redhu Farms CIRP

Authority: National Company Law Tribunal Chandigarh Bench, Court-I (Sh. Khetrabasi Biswal, Member Judicial and Sh. Shishir Agarwal, Member Technical)

Order Date: 12 June 2026

Case Overview

This application was filed by Mr. Adesh Kumar Singla, the Resolution Professional of M/s Redhu Farms Private Limited (Corporate Debtor), under Section 12A of the Insolvency and Bankruptcy Code, 2016 read with Regulation 30A of the CIRP Regulations, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP).

The CIRP was initiated against Redhu Farms pursuant to the admission of CP (IB) No. 129/CHD/HRY/2021 filed under Section 9 by M/s Aviagen India Poultry Breeding Company Private Limited (Operational Creditor) on 30 March 2023. During the CIRP, the Committee of Creditors (CoC) was constituted with Bank of Baroda as the sole unrelated Financial Creditor holding 100% voting share. After no viable resolution plans were received, the CoC resolved to liquidate the company, and liquidation application IA (IBC)(LIQ.) No. 2317 of 2023 was filed and is pending.

Subsequently, the suspended management reached settlements with both creditors. Bank of Baroda accepted a One Time Settlement of ₹14.75 Crores against its admitted claim of ₹26,40,82,811.90. The operational creditor was paid ₹79,36,734/- in full and final settlement. The operational creditor submitted Form FA dated 08.05.2026 seeking withdrawal of CIRP, which was approved by the CoC (Bank of Baroda) with 100% voting share in its 40th meeting on 15.05.2026.

Substantial CIRP costs had been reimbursed: approximately ₹23,26,396.89 to erstwhile RP Mr. Prashant Gupta and ₹1,05,68,417.81 to the current RP. The only outstanding issue was unpaid valuer fees of ₹10,20,700/-. During hearings, Bank of Baroda undertook to bear 50% of this amount, and the suspended management undertook to bear the remaining 50%. The concerned valuers conveyed no objection to withdrawal subject to payment.

Final Outcome

The Tribunal allowed the application and directed:

1. CIRP of Redhu Farms stands withdrawn immediately under Section 12A

2. Moratorium under Section 14 stands vacated forthwith

3. Mr. Adesh Kumar Singla is discharged as RP after completing residual statutory filings within 7 days

4. All pending interlocutory applications are disposed of as infructuous

5. The main petition CP(IB) No. 129/CHD/Hry/2021 is withdrawn

Topics: Insolvency Withdrawal, Creditor Settlement, NCLT Order