# In the matter of E M I Transmission Limited M.A. 657 OF 2020 In C. P. No. 2660-I&B-2018

> NCLT judgment dated 2021-05-12. Citation: TCN-2021-NCLT-02158. The application was filed by the Resolution Professional (RP) under Section 60(5)(c) read with…

- **Court:** NCLT
- **Order date:** 12 May 2021
- **Citation:** TCN-2021-NCLT-02158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/e-m-i-transmission-limited-ma-657-of-2020-in-c-p-no-2660-ib-2018-64a91cbf

## Summary

### Background

The application was filed by the Resolution Professional (RP) under Section 60(5)(c) read with Sections 14 and 238 of the Insolvency & Bankruptcy Code, 2016, seeking directions to quash/set aside the 'Recovery Certificate'. The corporate debtor is involved in providing specialized transmission company services. The company petition was filed by Dena Bank under Section 7 of the Code, and the tribunal admitted the petition on 2019-04-11, appointing Mr. Shailesh Bhalchandra Desai as the Interim Resolution Professional (IRP), later confirmed as RP. The CoC decided on liquidation due to the CIRP period expiring without a resolution plan. A liquidation application was filed, and a public announcement of CIRP was made on 2019-04-15, inviting claims by 2019-04-27.

## Facts

The corporate debtor, EMI Transmission Limited, was undergoing CIRP. Dena Bank initiated the CIRP under Section 7 of the IBC. Mr. Shailesh Bhalchandra Desai was appointed as the IRP and later confirmed as RP. A public announcement of the CIRP was made on 2019-04-15. Centre Point Premises Co-operative Society Ltd. (the respondent) submitted a claim of Rs. 48,12,025/- as society maintenance charges. The RP admitted Rs. 39,43,377/- as an operational debt, but did not admit Rs. 8,68,648/- related to property tax. Despite the moratorium under Section 14 of the Code, the respondent approached the Assistant Registrar, Cooperative Society, and obtained a recovery certificate for Rs. 53,45,762/-. The RP filed an application to quash the recovery certificate, arguing that it

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## Issues and analysis

### Issue 1: Whether the action of the respondent in initiating recovery proceedings against the corporate …

**Ratio:** Section 14 of the IBC imposes a moratorium that prohibits the institution or continuation

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**Reasoning:** The tribunal reasoned that the respondent's action of obtaining a recovery certificate

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**Interpretation:** Section 14 is interpreted as a mandatory provision that restricts any recovery

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**Application:** In this case, the respondent's action of obtaining a recovery certificate was

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Shailesh Bhalchand…
- **Respondents:** EMI Transmission…; Centre Point…

## Timeline

- **2018-01-01 — Company Petiti…**: C. P. No. 2660/I&B/2018…
- **2019-04-11 — Petition Ad…**: Tribunal admitted 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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