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2022 (1) TMI 263 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH, NEW DELHIRight of bank to claim priority on redemption of FD - Seeking transfer of amount payable (including interest accrued thereon) on closure of Fixed Deposits to the account held by the Corporate Debtor with IDBI Bank - CIRP proceedings under process - HELD THAT:- From the perusal of Clause 10(c) of the Facility Agreements (at page 86 of the Appeal Paper Book), the Appellant Bank is required to first ask from the Corporate Debtor to furnish additional security - It is an admitted fact that the Appellant has failed to place on record any document to establish that a request was ever made for creating additional security in terms of Clause 10(c). From the perusal of the Clause 14 of the Facility Agreements which states that in the event of default in repayment of the financial facilities, the Appellant has the right to take possession of Charged Assets - Fixed Deposits were never charged to the Appellant neither originally as “Charged Assets” nor subsequently as “Additional Security”, hence the Bank has no right over these Fixed Deposits even when loan is recalled by the Bank. No such charge was registered by the Corporate Debtor or even by the Appellant in terms of Section 77 of the Companies Act, 2013. Appeal dismissed.
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