# In the matter of EMC Ltd. CA (IB) No. 1175,1266 & 1327-KB-2019 in CP(IB) No. 1237/KB-2018

> NCLT judgment dated 2019-10-21. Citation: TCN-2019-NCLT-00906. The case involves multiple applications related to the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 21 Oct 2019
- **Citation:** TCN-2019-NCLT-00906
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/emc-ltd-ca-ib-no-11751266-1327-kb-2019-in-cpib-no-1237kb-2018-6d08a15a

## Summary

### Background

The case involves multiple applications related to the Corporate Insolvency Resolution Process (CIRP) of EMC Ltd. CP(IB) No. 1237/KB/2018 was initiated by Beni Gopal Singhi, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 2018-11-12, and Mr. Rakesh Kumar Agarwal was appointed as the Interim Resolution Professional, later replaced by Mr. Kannan Tiruvengadam. The CIRP process involved 9 meetings of the Committee of Creditors (CoC), leading to the approval of a Resolution Plan submitted by Almas Global Opportunity Fund SPC with a vote share of 80.18%. Several objections were raised against the approval of the Resolution Plan, including concerns about the distribution pattern of the resolution fund.

## Facts

Beni Gopal Singhi, an Operational Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against EMC Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 2018-11-12. Rakesh Kumar Agarwal was initially appointed as the Interim Resolution Professional but was later replaced by Kannan Tiruvengadam. The Committee of Creditors (CoC) conducted 9 meetings and approved a Resolution Plan submitted by Almas Global Opportunity Fund SPC with an 80.18% vote share. Bank of Baroda, a Financial Creditor and member of the CoC, filed CA(IB) No. 1175/KB/2019 seeking directions regarding payment related to a Bank Guarantee invoked by Power Grid Corporation of India Limited during the CIRP. Canara Bank, another Financial Creditor

…

## Issues and analysis

### Issue 1: Whether the application by Bank of Baroda seeking advice regarding the remittance of payment in …

**Ratio:** A Bank Guarantee is an independent contract between the Bank and the beneficiary and

…

**Reasoning:** The court reasoned that Bank of Baroda, being a nationalized bank and a member of the

…

**Interpretation:** The interpretation is that the Adjudicating Authority should not interfere in

…

**Application:** The court applied this principle to the facts by dismissing Bank of Baroda's

…

## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Beni Gopal…
- **Respondents:** EMC L…

## Timeline

- **2018-11-12 — Application A…**: CP(IB) No. 1237/KB/2018 filed by…
- **2019-07-09 — Bank War…**: Bank of Baroda was warned for failing to make payment to M/s. Power Grid Corporation of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/emc-ltd-ca-ib-no-11751266-1327-kb-2019-in-cpib-no-1237kb-2018-6d08a15a