# In the matter of Applied Electro Magnetics Pvt. Ltd. IA-3927-2020 & 1356-2021 in (IB)-334-ND-2017

> NCLT judgment dated 2021-08-16. Citation: TCN-2021-NCLT-01320. The case involves an application filed under Section 60(5) of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Aug 2021
- **Citation:** TCN-2021-NCLT-01320
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/applied-electro-magnetics-pvt-ltd-ia-3927-2020-1356-2021-in-ib-334-nd-2017-02fc9f41

## Summary

### Background

The case involves an application filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016 (IBC) by M/s Applied Electro Magnatics Pvt. Ltd. (Corporate Debtor) and the Resolution Applicant, seeking directions against the Respondents (Onyx Components and Systems Pvt. Ltd. and others) to refund Rs. 12,30,457/- to the Corporate Debtor with 18% interest, alleging that the Respondents illegally retained this amount, which was given during the moratorium period for the supply of goods/components. The Corporate Debtor initiated Corporate Insolvency Resolution Process (CIRP) on 26.10.2017, and the Resolution Plan was approved on 02.04.2019. The Respondents, instead of refunding the amount, issued a legal notice for recovery of Rs. 34,07,390/-. The applicants

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## Facts

The Corporate Debtor, M/s Applied Electro Magnatics Pvt. Ltd., underwent Corporate Insolvency Resolution Process (CIRP) initiated on 26.10.2017. A Resolution Plan was approved on 02.04.2019. During the moratorium period, the Interim Resolution Professional (IRP) made payments to the Respondents (Onyx Components and Systems Pvt. Ltd. and others) for the supply of goods/components. The Corporate Debtor sought a refund of Rs. 12,30,457/- from the Respondents, alleging that they illegally retained this amount. The Respondents, instead of refunding, claimed that Rs. 34,07,390/- was due to them from the Corporate Debtor and issued a legal notice for recovery. The Respondents had been supplying goods to the Corporate Debtor since 2012, maintaining a running account. The CIRP

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## Issues and analysis

### Issue 1: Whether the application filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016 is …

**Ratio:** Section 60(5) of the IBC provides jurisdiction to the NCLT to entertain or dispose of any

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**Reasoning:** The Adjudicating Authority reasoned that since the Resolution Plan had already been

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**Interpretation:** The interpretation of Section 60(5) and Rule 11 suggests that these provisions

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**Application:** In this case, the Resolution Plan had already been approved on 02.04.2019.

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Respondents:** M/s Applied…; M/s Onyx Component…
- **Advocates:** Shlok Ch…; Mansie…; +3 more

## Timeline

- **2017-10-26 — Initiation…**: Corporate Insolvency Resolution Process (CIRP)…
- **2019-04-02 — Approval of Resolution…**: Resolution Plan for the…

## 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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