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2018 (6) TMI 1750 - Tri - Insolvency and BankruptcySeeking direction to reverse amounts that have been debited by ICICI bank after 15.12.2017 from the current account of the Corporate Debtor - seeking to transfer the same to current account of the Corporate Debtor maintained with ICICI - HELD THAT:- If characteristics of ownership is read into the given situation, since right of disposal is the basic characteristic of ownership, as long as monies are at the disposal of a person, such person has to be treated as a person having right of disposal over the given monies - If the same analogy is applied here saying that the corporate debtor is treated as debtor, the creditor will have right of recovery, not right of disposal over the monies lying in its current account. The right of the creditor being a remedy for realization and that remedy being suspended in the period of moratorium, such right of remedy could not be exercised soon after declaration of moratorium. Once the monies lying in current account is construed as the asset of the Corporate Debtor, section 14 will trigger in over the said asset as well. For it has been admitted that the respondent/the creditor appropriated the monies lying in the account of Corporate Debtor against the loan account soon after moratorium has been declared, such transaction has to be held as hit by sec 14 of the Code, for this reason, this Bench hereby holds that the appropriation of the monies of the Corporate Debtor against the loan account of the Corporate Debtor by the creditor herein is bad in law, hence it is hereby declared invalid directing the Respondent/IClCl Bank to deposit the same in the account of the Corporate Debtor. Application allowed.
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