# In the matter of EPC Constructions India Limited IA 1623 of 2019 in CP (IB) 1832-MB-C-II-2017

> NCLT judgment dated 2021-05-07. Citation: TCN-2021-NCLT-02180. The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 May 2021
- **Citation:** TCN-2021-NCLT-02180
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/epc-constructions-india-limited-ia-1623-of-2019-in-cp-ib-1832-mb-c-ii-2017-fa78a86f

## Summary

### Background

The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, by the Monitoring Agency of the Corporate Debtor, EPC Constructions India Limited, seeking initiation of a fresh Corporate Insolvency Resolution Process (CIRP). The initial CIRP was triggered by IDBI Bank Limited, a financial creditor. A resolution plan submitted by Royale Partners Investment Fund Limited (RPIFL) was approved but not implemented due to the Resolution Applicant's failure to meet financial obligations and subsequent attempts to unilaterally modify the plan. This led to multiple appeals and orders from the NCLT and NCLAT, ultimately resulting in the current application for liquidation.

## Facts

IDBI Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against EPC Constructions India Limited. Mr. Abhijit Guhathakurta was appointed as the Monitoring Agency. A resolution plan submitted by Royale Partners Investment Fund Limited (RPIFL) was approved by the Committee of Creditors (CoC) and the NCLT on 25.11.2019. RPIFL failed to submit the full performance security of Rs. 90 crores, initially depositing Rs. 42 crores and failing to deposit the remaining Rs. 48 crores within the stipulated 90 days. RPIFL sought to modify the approved resolution plan, which was rejected by the Steering Committee. IDBI Bank forfeited Rs. 42 crores of the performance security due to RPIFL's failure to implement the plan. The NCLT and NCLAT repeatedly directed RPIFL to

…

## Issues and analysis

### Issue 1: Whether the application to reinstate the Committee of Creditors and initiate a fresh resolution …

**Ratio:** The Adjudicating Authority should not grant additional time to complete the resolution

…

**Reasoning:** The court reasoned that the Resolution Applicant had deliberately failed to implement the

…

**Interpretation:** This interpretation emphasizes the importance of adhering to the timelines

…

**Application:** The court applied this ratio to the facts of the case, noting that the

…

## Parties

- **Judges:** Harihar Prakash…; RavikumarDu…
- **Appellants:** Abhijit Guhathakur…
- **Respondents:** EPC Constructions…

## Timeline

- **2017-01-01 — Initiation…**: CIRP initiated against EPC Constructions India…
- **2018-04-20 — Admission of…**: Petition under Section 7 of 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)

---

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/epc-constructions-india-limited-ia-1623-of-2019-in-cp-ib-1832-mb-c-ii-2017-fa78a86f