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2019 (4) TMI 1740 - Tri - Insolvency and BankruptcyPremature cancellation of Fixed Deposit - transfer of proceeds of the ‘Fixed Deposit Receipts’ into the account known as the Trust and Retention Account with the ‘Central Bank of India’ - issuance of direction to the Oriental Bank of Commerce to remit the balance in the Current Account - HELD THAT:- The application filed by the Resolution Professional merits acceptance and the one filed by the Oriental Bank of Commerce (OBC) is liable to be dismissed. It remains undisputed that there were 5 Fixed Deposits in the name of Corporate Debtor. The Resolution Professional as well as the Committee of Creditors (CoC) desired and issued instructions to OBC to discontinue the Fixed Deposits and the amount realized from the Fixed Deposits was to be credited in the Trust and Retention Account of the Corporate Debtor. The OBC has indicated to the Corporate Debtor that it had given Corporate Guarantee to secure the credit facilities sanctioned to M/s Halio Photo Voltaic Limited and they were advised to get the account adjusted failing which the OBC was to initiate legal action. Similarly, endorsement has been made in the letter dated 01.12.2015. Any withdrawal from the account/FDR by appropriation by OBC has to be regarded as violative of Regulation 19 also. In the absence of such a bar, it will not be possible for the Resolution Professional to verify the claim and the object of moratorium as contemplated under Section 14(1) (c) would stand defeated - the OBC has unnecessarily contested this litigation and the Interim Resolution Professional/Resolution Professional was merely performing his duties imposed on him by Section 17(l)(d) of the Insolvency and Bankruptcy Code, 2016. Application dismissed.
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