2017 (12) TMI 1035 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI

Corporate insolvency procedure - Held that:- We do not accept the submissions made on behalf of the Appellant in view of the fact that after admission of an application under Section 7 of the ‘I&B Code’, once moratorium has been declared it is not open to any person including ‘Financial Creditors’ and the appellant bank to recover any amount from the account of the ‘Corporate Debtor, nor it can appropriate any amount towards its own dues.

If the ‘Corporate Debtor’ has borrowed some amount from the Appellant-’Indian Overseas Bank’ and the Appellant- Indian Overseas Bank’ come within the definition of ‘Financial Creditor’ as defined in Section 5(7) of the ‘I&B Code’, it is always open to the Appellant- Indian Overseas Bank’ to file its claim before the ‘Interim Resolution Professional’ for getting the amount back. If the Appellant claims to be ‘Financial Creditor’ and files such claim before the ‘Interim Resolution Professional’ showing the principal amount and interest thereon, the ‘Interim Resolution Professional will consider the same and the Appellant being ‘Financial Creditor’ may be taken in the Committee of Creditors’.

We find no merit in this appeal, therefore, we are not inclined to interfere with the impugned order dated 13th October, 2017.