# In the matter of Emc Limited

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03161. The case involves an application filed under sections 12, 60(5), and 74 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03161
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/emc-limited-362193e5

## Summary

### Background

The case involves an application filed under sections 12, 60(5), and 74 of the Insolvency and Bankruptcy Code, 2016, read with rule 11 of the National Company Law Tribunal Rules, 2016, and in the alternative under sections 33 and 34 of the Insolvency and Bankruptcy Code, 2016. The application was filed by the Chairman of the Monitoring Committee against Almas Global Opportunity Fund SPC ('SRA') regarding the implementation of a resolution plan for EMC Limited ('Corporate Debtor'). The resolution plan, approved by the Adjudicating Authority on 21 October 2019, faced challenges due to the SRA's failure to make payments within the stipulated timeline and disputes over the terms of the performance bank guarantees (PBGs).

## Facts

Mr. Beni Gopal Singhi, an Operational Creditor, initiated CIRP against EMC Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 12 November 2018. Mr. Rakesh Kumar Agarwal was appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Kannan Tiruvengadam as the Resolution Professional (RP). Four entities expressed interest in submitting resolution plans, but only Almas Global Opportunity Fund SPC (SRA) and KBC Aldini Capital Limited submitted plans. The Committee of Creditors (CoC) rejected KBC Aldini Capital Limited's plan due to deficiencies. The SRA's resolution plan was approved by the CoC with 80.18% votes on 01 October 2019 and subsequently approved by the Adjudicating

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## Issues and analysis

### Issue 1: Whether the Chairman of the Monitoring Committee has the locus standi to maintain IA (IB) …

**Ratio:** Section 33(3) of the Insolvency and Bankruptcy Code, 2016, stipulates that in the event

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**Reasoning:** The court reasoned that when a Resolution Plan is approved, the CoC stands dissolved, and

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**Interpretation:** The phrase 'any person other than the Corporate Debtor' indicates the

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**Application:** The court applied this reasoning to the present case, holding that the Chairman

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Beni Gopal…
- **Respondents:** EMC Lim…; Almas Global…

## Timeline

- **2018-11-12 — Admission in…**: The application was admitted into Corporate Insolvency Resolution Process (‘CIRP') by…
- **2019-02-06 — Appointment…**: This Adjudicating Authority vide its order dated 06 February 2019 appointed Mr. Kannan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12 — Time-limit for completion of insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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