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2019 (2) TMI 1887 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - stand taken by the bank that since the FDR formed part of the security credits in favour of the bank towards repayment of the banks dues, the IRP is asking for the money to be used during the CIRP which is lying with the bank in the form of security credit by the corporate debtor - can the Financial Creditor who issued the Bank Guarantee against the FDR from current account of CD adjust FDR in the claim after discharge of the BG in midst of the Moratorium? - HELD THAT:- In the light of provisions Section 14 of the Insolvency and Bankruptcy Code more particularly 14(1)(c) clearly covers the same security as claimed by the bank. The financial creditor being the sole member of the COC though passing resolution by 100% for any of the agenda cannot be permitted to transgress the provisions of law. Bank is directed not to adjust the FDR in the claim after discharge of bank guarantee and transfer the said amount of FDR to lie in the bank account of corporate debtor for the purpose of continuing the CIRP - Application allowed.
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