# In the matter of EMCO Limited IA No. 2663-MB-C-II-2022    In C.P (IB) No. 2849-MB-C-II-2018

> NCLT judgment dated 2022-10-21. Citation: TCN-2022-NCLT-00642. The application was filed by Sherisha Powertech Private Limited, the successful bidder in the…

- **Court:** NCLT
- **Order date:** 21 Oct 2022
- **Citation:** TCN-2022-NCLT-00642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/emco-limited-ia-no-2663-mb-c-ii-2022-in-cp-ib-no-2849-mb-c-ii-2018-9e490696

## Summary

### Background

The application was filed by Sherisha Powertech Private Limited, the successful bidder in the e-auction process for the sale of EMCO Limited (Corporate Debtor). The application sought rectification of an order dated 09.09.2022, which approved the sale of the auction asset to the applicant. The applicant contended that certain inadvertent errors had crept into the Approval Order, requiring immediate rectification. There was also a lack of clarity regarding the payment of interest on the balance sale consideration.

## Facts

Sherisha Powertech Private Limited (SPPL), as the successful bidder in the e-auction for EMCO Limited (Corporate Debtor), filed an application seeking rectification of the order dated 09.09.2022, which approved the sale of EMCO Limited's assets to SPPL. SPPL claimed that the approval order contained inadvertent errors and lacked clarity regarding interest payments on the balance sale consideration. The Respondent is the Liquidator of the Corporate Debtor. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 r/w Rule 154 (1) and 154 (1) and Rule 11 of The National Company Law Tribunal Rules, 2016.

## Issues and analysis

### Issue 1: Whether the Approval Order dated 09.09.2022 should be rectified/corrected as per the applicant's …

**Ratio:** The court has the power to rectify orders to

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**Reasoning:** The court perused the records and noted that the order required rectification due to

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**Interpretation:** The power to rectify orders is intended to ensure accuracy and clarity in

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**Application:** The court applied this principle by rectifying the order to correct the errors

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Sherisha Powertech…
- **Respondents:** EMCO Li…; Sundaresh…

## Timeline

- **2022-09-09 — Approval Ord…**: Date of the Approval Order that…
- **2022-09-12 — Approval Orde…**: The Approval Order was…

## 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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