9911796707
TMI Blog2019 (4) TMI 1740X X X X Extracts X X X X X X X X Extracts X X X X ..... he application filed by the RP, a prayer has been made that Oriental Bank of Commerce maybe directed to prematurely cancel the Fixed Deposit Receipt No.06193031032707, 06193031032714, 06193031032721, 06193021014928 and 06193031032691 lying with it in the name of Corporate Debtor and transfer the proceeds of the Fixed Deposit Receipts into the account known as the Trust and Retention Account No.3230811629 with the Central Bank of India, Jeevan Tara Building, Parliament Street, New Delhi, IFSC: CBIN0283464 along with upto date interest. A further prayer has been made for issuance of direction to the Oriental Bank of Commerce to remit the balance in the Current Account No.6191011000852 which is lying deposited with the name of Corporate Debtor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so made clear that the Resolution Professional was to perform all his functions religiously as contemplated by Sections 15, 17, 18, 19, 20 & 21 of the Code. It is appropriate to mention that under Section 17(l)(d), there is a specific duty cast on the Interim Resolution Professional which read as under: 17(1) From the date of appointment of the interim resolution professional- (a) .................... (b).................... (c).................... (d) the financial institutions maintaining accounts of the corporate debtor shall act on the instructions of the interim resolution professional in relation to such accounts and furnish all information relating to the corporate debtor available with them to the interim resolution profes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after invocation, the OBC has appropriated the amount of the FDs equivalent to the Bank guarantee on 30.11.2017 and information in that regard was sent on 17.12.2017 to the Corporate Debtor. 6. Mr.K.Dutta, learned counsel for the RP has vehemently argued that letters dated 22.07.2014 and 01.12.2015 by no stretch of imagination could be regarded as invocation of bank guarantee. He has drawn our attention to the endorsement on these two letters whereby copies of letters have been forwarded to the Corporate Debtor and reliance on the endorsement is stated to be wholly misplaced. According to the learned counsel, there is nothing to infer from the letters that the corporate guarantee was invoked by the aforesaid two letters. Our attention was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar on the OBC to appropriate the amount which has already been invoked even after the triggering of CIR process. Pressing his application, learned counsel has argued that claim made by the OBC on the basis of the bank guarantee merits acceptance as the invocation was made much earlier in the year 2015 than the date of admission of the petition, i.e. 14.11.2017. 9. Having heard learned counsel for the parties, we are of the considered view that the application filed by the Resolution Professional merits acceptance and the one filed by the Oriental Bank of Commerce (OBC) is liable to be dismissed. It remains undisputed that there were 5 Fixed Deposits in the name of Corporate Debtor. The Resolution Professional as well as the Committee of Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the circumstances, the Bank has decided to recall the advance granted to you. You are, therefore, now required to discharge in full the bank's liabilities with up to date interest as per the details mentioned above within a period of 30 days from the date of the notice failing which the bank shall initiate necessary action for recovery of bank dues. Yours faithfully, Asstt. Gen. Manager Copy to - The Managing Director, M/s Moser Baer India Limited, 43-A, Okhla Industrial Estate, New Delhi-110020. Your company has given Corporate Guarantee to secure the credit facilities sanctioned in subject account. You are advised to get the account adjusted, failing which the bank will initiate legal action. Copy to - Mr.Deepak Puri, Building No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase this was barred by Section 14 of the Code and the directions issued by us in the order dated 14.11.2017. In the case of AXIS Bank Ltd. (supra), the Principal Bench has taken the view that in accordance with the provisions of Regulation 13 of the Insolvency and Bankruptcy Board of India (Corporate Resolution Process for Corporate Persons) Regulations, 2016, the Interim Resolution Professional/Resolution Professional has to verify every claim as on the insolvency commencement date. Therefore, as per the books of account, on 14.11.2017 the amount in Fixed Deposits stood in the name of the Corporate Debtor. Any withdrawal from the account/FDR by appropriation by OBC has to be regarded as violative of Regulation 19 also. In the absence of su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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