# 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-01318. 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-01318
- **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-2017-673d8a02

## 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., the Corporate Debtor, seeking directions against the Respondents (M/s Onyx Components and Systems Pvt. Ltd. and others) to refund Rs. 12,30,457/- with interest, alleging that this amount was illegally retained by them, contravening Section 14, 31, and 74 of IBC. The Corporate Debtor initiated Corporate Insolvency Resolution Process (CIRP) on 26.10.2017, and a moratorium was imposed. The Resolution Plan was approved on 02.04.2019. The Corporate Debtor contends that payments were made to the Respondents during the moratorium period for the supply of goods/components, which the Respondents failed to supply, and instead,

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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 moratorium was imposed on the assets of the Corporate Debtor. The Resolution Plan was approved on 02.04.2019. During the moratorium period, the Interim Resolution Professional (IRP) made payments to the Respondents (M/s 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 neither supplied the goods/components nor refunded the amount. The Respondents, instead of refunding the amount, issued a legal notice for recovery of Rs. 34,07,390/-. The Respondents claimed they had been supplying goods to the

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## Issues and analysis

### Issue 1: Whether the application filed by the applicants under Section 60(5) of IBC, 2016 is maintainable, …

**Ratio:** Section 60(5) of IBC provides jurisdiction to the National Company Law Tribunal (NCLT) to

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**Reasoning:** The court reasoned that since the Resolution Plan had already been approved by the

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**Interpretation:** The interpretation of Section 60(5) and Section 5(14) of IBC is that once the

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**Application:** In this case, the Resolution Plan was approved on 02.04.2019. The application

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Respondents:** M/s Applied…; M/s Onyx Component…

## Timeline

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