TMI Blog2019 (12) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to the appellant bank the sums it had to receive from Southern Railways for such projects so executed. The submission of the Corporate Debtor that the sums deposited by the Southern Railways, into the credit of the account in O.A. No. 131 of 2013 were all receivables from projects for which no loans were taken from the appellant is untenable. Matter remanded back to decide the security interest of the Appellant Bank before the liquidator can be given the assets of the corporate debtor to be dealt with under section 53 of the I B Code. - Company Appeal (AT) (Insolvency) No. 632 of 2019 - - - Dated:- 4-12-2019 - Mr. Jarat Kumar Jain, Member (Judicial) Mr. Balvinder Singh, Member (Technical) Dr. Ashok Kumar Mishra, Member (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he General Manager, Southern Railway, Park Town, Chennai restraining them from releasing any payment without any further direction from tribunal in this regard. The Corporate Debtor Challenged the aforesaid order of DRT, Chennai in W.P. No. 29206 of 2013 before the High Court of Madras. The list of Railway Project mortgaged to the Appellant Bank were submitted by the Southern Railway , Chennai and Corporate debtor. 4. The Hon ble High Court after hearing the parties at length, in W.P. No. 29206 of 2013, vide the order dated 28.11.2013 modified the aforesaid order passed by the DRT, Chennai to direct the Southern Railway ( Garnishee ) to deposit ₹ 7.50 Crores out of the funds, that will be released after completion of meas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Affidavit filed by the Applicant / Resolution professional reveals that the amount of ₹ 7.50 Crores deposited with the DRT 1 Chennai is transferred to DRT forms part of an estate of the assets of the corporate Debtor for the purpose of Liquidation as per Section 36 (3) of the code. 7. The Appellants submits that the appellant never relinquished its right or security interest to liquidate. The Appellant further submitted that in case the said amount deposited with DRT II in the OA filed by the bank is released in its favor towards the claim filed by them, the appellant bank shall move out of liquidation process without claiming any further amount from the company. 8. The Adjudicating Authority erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the I B code were not complied with. 10. The Corporate Debtor by way of Hypothecation agreement had pledged his assets to the Appellant bank as Bank Guarantee for availing cash credit of ₹ 20 Crores. The Charge is also registered with the ROC as appearing on the MCA website. Such charge on the assets of corporate debtor can also be seen in ROC records in assets under charge . Under the said agreement outstanding money, receivables, claims, bills, contracts, engagements and securities which are due or become due during the course of business of corporate debtor are furnished as security with the Appellant bank. 11. The impugned order passed by the Adjudicating Authority to the extent it directed the liquidato ..... X X X X Extracts X X X X X X X X Extracts X X X X
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