# In the matter of EMC Ltd. IA(IBC) No.944 & 1074-KB-2019, IA(IBC) No.63, 245 & 1275-KB-2020, IA(IBC) No.341-KB-2021 in CP (IB) No.1237-KB-2018

> NCLT judgment dated 2022-01-27. Citation: TCN-2022-NCLT-04359. The case involves an application filed under section 74 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 27 Jan 2022
- **Citation:** TCN-2022-NCLT-04359
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/emc-ltd-iaibc-no944-1074-kb-2019-iaibc-no63-245-1275-kb-2020-iaibc-no341-kb-2021-9e766e97

## Summary

### Background

The case involves an application filed under section 74 of the Insolvency and Bankruptcy Code (IBC) against the Successful Resolution Applicant (SRA) for contravening the resolution plan approved by the Adjudicating Authority on 2019-10-21. The SRA was required to make the entire payment within 60 days of the plan's approval, but failed to do so despite multiple opportunities granted by the Monitoring Committee. The matter has been under consideration since 2021-01-04.

## Facts

The Adjudicating Authority approved a resolution plan on 2019-10-21, requiring the Successful Resolution Applicant (SRA) to make full payment within 60 days, i.e., by 2019-12-20. The SRA failed to meet this deadline despite multiple opportunities granted by the Monitoring Committee. The applicant filed an application under section 74 of the IBC, alleging contravention of the approved resolution plan. The SRA cited reasons for non-compliance, including an appeal against the resolution plan, the COVID-19 pandemic, and the illness of a family member of the authorized representative. The SRA had submitted affidavits assuring payments within specific timeframes, but these commitments were not honored. The approved resolution plan involves a total payment of ₹568 crore, but

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## Issues and analysis

### Issue 1: Whether the Successful Resolution Applicant (SRA) contravened the approved resolution plan by …

**Ratio:** Section 74 of the IBC provides for penalties for contravention of the approved resolution

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**Reasoning:** The SRA was obligated to make payments as per the approved resolution plan within the

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**Interpretation:** The approved resolution plan is a binding agreement, and all parties are

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**Application:** The SRA failed to make payments within the stipulated timeframe, thus

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## Parties

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

## Timeline

- **2019-10-21 — Resolution Plan…**: The Adjudicating Authority…
- **2019-12-20 — Payment De…**: Deadline for the SRA to make the entire payment under the resolution plan (60 days from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 74 — Punishment for contravention of moratorium or the…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-74)

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