IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH COURT III I.A.43/2022 IN CP No.2660/2018 Under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the National Company Law Tribunal Rules, 2016, Union Bank of India Stressed Assets Management Branch, 104, Ground floor, Bharat House, MS Marg, Fort, Mumbai.

…Applicant Vs.

Mr. Shailesh Desai (Liquidator)

Headway Resolution and Insolvency Services Private Limited, 1006, Raheja Centre, 10th Floor, Nariman Point, Mumbai - 400 021. … Respondent No.1 Bank of Baroda Backbay Reclamation Branch, Backbay Reclamation, Appejay House, 3, Dinshaw Vaccha Road, Mumbai-400020.

… Respondent No.2 Standard Chartered Bank

4th Floor, Crescenzo, BKC, Mumbai-

400051.

… Respondent No. 3 In the matter of Under Section 7 of the Insolvency and Bankruptcy Code,2016.

Dena Bank Dena Corporate Centre, C-10, G- Block, Bandra- Kurla Complex, Bandra (East), Mumbai- 400 051.

… Financial Creditor Vs.

EMI Transmission Limited (in liquidation).

101, 1st Floor, Centre Point, Dr. Babasaheb Ambedkar Road, Parel, Mumbai – 400012 …Corporate Debtor Order pronounced on: 28.04.2026 Coram:

Hon’ble Ms. Lakshmi Gurung, Member (Judicial)

Hon’ble Sh. Hariharan Neelakanta Iyer, Member (Technical).

Appearances:

For the Applicant: Adv. Deepak Saxena, Adv. Shivanjali Mane, Adv. Bhardwaj, Adv. Malhar Zatakia, Adv.

Kaushal Ameta i/b Legal Prism.

For the Respondent No.1: Adv. Ayush Rajani, Adv. Mitali Bhatt, Adv.

Priyank Jadhav i/b ARK Legal.

For the Respondent No.2 None appeared For the Respondent No.3 Adv. Virgil Braganza, Adv. Shaan Bhatt i/b J.

Sagar Associates.

PER: MS. LAKSHMI GURUNG, MEMBER (JUDICIAL)

ORDER

1. This application has been filed by the Union Bank of India (‘the Applicant’) under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (‘the Code’), read with Rule 11 of the National Company Law Tribunal Rules, 2016, (‘NCLT Rules’) seeking following reliefs: -

a) That this Tribunal be pleased to direct the Respondent No. 1 to release entire refund amount of Rs.1,83,90,060/- (Rupees One Crore Eighty-Three Lakhs Ninety Thousand Sixty less the amount paid to the Applicant), refunded by KEC International Limited, to the Applicant;

b) In the alternate this Tribunal, be pleased to direct the Respondent No. 2 & 3 to release amount of Rs.1,16,87,810/- (Rupees One Crore Sixteen Lakhs Eighty-Seven Thousand Eight Hundred Ten only) and Rs.4,74,578/- (Rupees Four Lakhs Seventy-Four Thousand Five Hundred Seventy-Eight only) respectively received from Respondent No.1, under section 53 of the IB Code to the Applicant;

c) Any other reliefs as this Tribunal may deem fit in the circumstances of the matter.

2. The Applicant is inter alia assailing the action of the Respondent No. 1 for inclusion of the amount of Bank Guarantee wrongfully invoked and encashed by KEC International Limited (KEC), into liquidation estate and its distribution under section 53 of Insolvency and Bankruptcy Code, 2016 (‘the Code’).

Brief Facts:

3. Upon an application filed by Dena Bank under Section 7 of the Code, M/s EMI Transmission Ltd. (the Corporate Debtor) was admitted into Corporate Insolvency Resolution Process (‘CIRP’) on 11.04.2019 and Respondent No. 1 was appointed as the Interim Resolution Professional (‘IRP’) and was later confirmed as Resolution Professional (‘RP’) of the Corporate Debtor.

4. In the tenth meeting of Committee of Creditors (‘COC’) held on

02.01.2020, the COC noted that no resolution plan was received and hence passed a resolution to liquidate the Corporate Debtor.

5. In the meantime, during the CIRP period, KEC, being a beneficiary, invoked Bank Guarantees issued by the Applicant, on behalf of the Corporate Debtor, and the Applicant complying with the same released the amount of Bank Guarantees aggregating to Rs.2,00,00,000/-

(Rupees Two Crores Only) to KEC on 28.01.2020.

6. Upon an application filed by the Respondent No.1, this Tribunal ordered for liquidation of the Corporate Debtor on 14.08.2020 in M.A No.

307/2020 and Respondent No.1 wa