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2020 (8) TMI 574 - AT - Insolvency and BankruptcyRelease of amount deposited with the Registrar General of the Hon’ble High Court of Delhi upon invocation of the Bank Guarantee - asset of the Corporate Debtor given as ‘security interest’, or not - CIRP process - HELD THAT:- The amount of ₹ 20 Crores deposited by way of Bank Guarantee was against the sum of ₹ 76.45 Crores awarded, therefore, said amount of ₹ 20 Crores, if payable to the Financial Creditor will be out of ₹ 76.45 Crores as awarded in its favour. Even if, it is accepted that said amount of ₹ 20 Crores, as deposited with the Registrar General of Delhi High Court, is meant for payment to the Appellant - ‘Morgan Securities & Credits Pvt. Ltd.’ against the awarded amount of ₹ 76.45 Crores - the Bank Guarantee of ₹ 20 Crores given by the Bank on behalf of the Corporate Debtor, relates to the claim of the Appellant - ‘Morgan Securities & Credits Pvt. Ltd.’ which has been taken care by the Resolution Professional against the claim preferred in the Corporate Insolvency Resolution Process. Such being the position, during the Corporate Insolvency Resolution Process, the amount will be deposited with the Resolution Professional and the Appellant’s claim can be taken care by the Successful Resolution Applicant, if a resolution plan is approved. During the liquidation stage the amount of ₹ 20 Crores cannot be treated as ‘Security Interest’, merely because it was deposited against award amount of ₹ 76.45 Crores. The finding given by the Adjudicating Authority that the amount of ₹ 20 Crore is an asset of the Corporate Debtor is upheld - the observation that the amount was ‘a security interest in Morgan’s favour’ being against the facts and law is set aside - appeal dismissed.
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