# In the matter of EMC Limited IA (IB) No. 63-KB-2020 in CP (IB) No. 1237-KB-2018

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03184. The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03184
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/emc-limited-ia-ib-no-63-kb-2020-in-cp-ib-no-1237-kb-2018-d32280de

## Summary

### Background

The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Indiabulls Consumer Finance Limited against the Successful Resolution Applicant (SRA) and others, seeking a direction for the SRA to disburse the amount due to the dissenting financial creditor as per Section 53(1) of the Code. The corporate insolvency resolution process (CIRP) was initiated against EMC Limited, with Almas Global Opportunity Fund SPC being the successful resolution applicant. The resolution plan was approved by the Committee of Creditors (CoC) and the Adjudicating Authority. However, the SRA failed to implement the resolution plan within the stipulated time, leading to the application for its abrogation and invocation of performance bank

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## Facts

Mr. Beni Gopal Singhi, an Operational Creditor, initiated CIRP against EMC Limited (Corporate Debtor). The CIRP was admitted on 12 November 2018. Mr. Kannan Tiruvengadam was appointed as the Resolution Professional (RP). Almas Global Opportunity Fund SPC (SRA) submitted a resolution plan that was approved by the CoC with 80.18% votes on 01 October 2019 and subsequently approved by the Adjudicating Authority on 21 October 2019. The SRA was required to make a payment of ₹568 crore within sixty days of the resolution plan's approval. The SRA made a payment of ₹30 crore on 08 January 2021 towards Earnest Money Deposit (EMD) and Performance Bank Guarantee (PBG). The Monitoring Committee was constituted on 02 November 2019, with the erstwhile RP as its Chairman. The SRA

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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 Code stipulates that any person other than the Corporate Debtor,

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**Reasoning:** The court reasoned that the phrase 'any person other than the Corporate Debtor' indicates

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**Interpretation:** The interpretation of Section 33(3) emphasizes the protection of stakeholders'

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**Application:** The court applied the ratio to the facts by stating that the Chairman of the

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## Parties

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

## Timeline

- **2018-11-12 — CIRP Init…**: Application admitted into Corporate Insolvency Resolution Process (‘CIRP') by the…
- **2019-02-06 — Appointment…**: Mr. Kannan Tiruvengadam appointed as…

## 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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