# In the matter of EMCO Limited IA No. 870-MB-C-II-2022 In C.P (IB) No. 2849-MB-C-II-2018

> NCLT judgment dated 2022-09-09. Citation: TCN-2022-NCLT-01121. The case involves an application by Sherisha Powertech Private Limited (Applicant) seeking…

- **Court:** NCLT
- **Order date:** 9 Sept 2022
- **Citation:** TCN-2022-NCLT-01121
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/emco-limited-ia-no-870-mb-c-ii-2022-in-cp-ib-no-2849-mb-c-ii-2018-dc1ef3c9

## Summary

### Background

The case involves an application by Sherisha Powertech Private Limited (Applicant) seeking permissions/approvals related to the acquisition of EMCO Limited (Corporate Debtor) as a going concern through a liquidation process. EMCO Limited was ordered to be liquidated on August 9, 2019, and Sundaresh Bhat was appointed as the liquidator. The liquidator initiated an e-auction process, and the Applicant was declared the successful bidder. However, disputes arose regarding the terms of payment, transfer of ownership, and liabilities of the Corporate Debtor.

## Facts

EMCO Limited was ordered to be liquidated on 09.08.2019, with Sundaresh Bhat appointed as the liquidator. The liquidator initiated an e-auction process, and Sherisha Powertech Private Limited (STPL's parent company) submitted a bid for Category A Assets, which included EMCO Limited as a whole with its legal entity and financial assets. The e-auction process was initially cancelled on 02.03.2022, but a fresh e-auction was initiated on 08.03.2022. The reserve price for the 'Auction Assets' was INR 166.60 Crores. The Applicant deposited an Earnest Money Deposit (EMD) of Rs.16.66 Crore, which included Rs.16.50 Crore deposited by STPL during the earlier e-auction process. On 22.03.2022, the Applicant was declared the successful bidder and was called upon to pay the balance

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## Issues and analysis

### Issue 1: Whether the reliefs sought by the Applicant to acquire the Corporate Debtor on a clean slate basis …

**Ratio:** The principle of maximizing the value of assets and facilitating the sale of the

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**Reasoning:** The court considered the submissions of both parties and the need to facilitate the sale

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**Interpretation:** The court interpreted the IBC and the Liquidation Process Regulations to allow

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**Application:** The court granted several reliefs to the Applicant, including exemptions from

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## Parties

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

## Timeline

- **2019-08-09 — Liquidation…**: EMCO Limited was ordered to be…
- **2021-12-10 — E-auction Process…**: The Liquidator issued an ‘E-auction Process Document' for the sale of assets 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)

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