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2018 (9) TMI 1954 - AT - Insolvency and BankruptcyDirection to Appellant to pay back the sum to the Corporate Debtor, which was paid to them after the order of moratorium - HELD THAT:- Such submission made by learned counsel for the Appellant is not acceptable as the order of moratorium was passed by the Adjudicating Authority after hearing the Corporate Debtor. After passing said order it came in effect from the same date i.e. 15th January, 2018. Therefore, the Corporate Debtor being under the control of the Resolution Professional, the (Suspended) Board of Directors had no jurisdiction to divert funds to the creditors. Such transfer of funds, during the period of moratorium, in favour of the Creditors namely Mr. Bijay Kumar Garodia, Mr. Nishant Garodia and Mr. Ram Goapal Garodia being illegal, the Adjudicating Authority rightly directed them to refund the amount. The appellants are directed to refund the amount immediately to the Corporate Debtor, not beyond 30 days, failing which it will be open to the Resolution Professional to move before the Adjudicating Authority for initiating contempt proceeding - Appeal dismissed.
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