No problem. TC is just the transfer certificate specifying that the student is no longer studying in the particular school and can move to a new school or college.

If your TC indicates "Fails" that should not be a major problem because when taking admission to college, they ask you for the marksheet also, so when you have passed your examination, you will get a marksheet indicating the marks and "pass" status. So, talk to the respected authority of the college and they will help you out with this.

Hope this helps.