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2020 (10) TMI 481 - Tri - Insolvency and BankruptcyValidity of unilateral action of appropriation of receivables of the Corporate Debtor deposited in the cash credit account and the working capital account of the Corporate Debtor - Section 14 read with Section 17 and Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- The 4th respondent, the State Bank of India in its reply states that they have recalled the loan accounts on 21.03.2017 much before the initiation of the Corporate Insolvency Resolution Process. The State Bank of India further states that the Corporate Debtor does not maintain any current account with this respondent. However, the Corporate Debtor availed various credit facilities which include cash credit from Overseas Vishakhapatnam Branch of State Bank of India In view of the fact that the erstwhile Resolution Professional himself remitted the amounts towards the credit of the cash credit account, this respondent has not violated/contravened provisions of Section 14 and Section 17(1) (d) of the Insolvency and Bankruptcy Code, 2016. In respect to the claim of ₹ 20.52 crores as on 13.07.2017 which included fund based outstanding of ₹ 1.46 crore and non-fund-based outstanding of ₹ 19.06 crore. The fund-based facilities have been paid off by the company management i.e. the erstwhile Resolution Professional. Hence, it is incorrect to states that the respondent has appropriated the fund towards the loan account during the Corporate Insolvency Resolution Process. Since, it was a unilateral act of the erstwhile Resolution Professional who has paid during the moratorium period. So, this respondent categorically states that they have not violated the provisions of Section 14 and 17 of the Insolvency and Bankruptcy Code, 2016. However, the erstwhile Resolution Professional has inadvertently paid the loan amount. During the moratorium period various payments towards non-fund and fund-based accounts of the respondents were credited by the erstwhile Resolution Professional. Hence, these payments ought to be reversed as receivables of the Corporate Debtor. The meeting to sort out the issue between them have failed. All banks are directed to reverse the due amounts - application allowed.
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