9911796707
TMI Blog2019 (2) TMI 1887X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, if any, the respondent FC, to credit the bank account of the CD, Mansfield Cable Company Limited controlled by the RP, and pass any other order as deem fit and proper to this Hon'ble Tribunal. 2. It is stated that CIRP against corporate debtor was initiated vide order dated 15th May, 2018 and IRP was appointed who was then replaced by present RP with 100% consent of COC. 3. The present respondent being the financial creditor, Allahabad Bank (for brevity the respondent), Lajpat Nagar Branch is the sole member of COC. It is stated that the respondent herein being the Allahabad bank had issued FDR the amount against the bank guarantee towards the corporate debtor. Similarly, on 30th February, 2018 the respondent deposited an amount of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nders by RP to the Allahabad Bank to transfer the said amount of FDR into TR account of Corporate Debtor during the moratorium. The respondent has not taken any steps and the set of transferring/converting any amount of the facilities of CD during moratorium is prohibited u/s. 14 of the Insolvency and Bankruptcy Code. It will be appropriate to reproduce terms of Section 14 here: 14(1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely, (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at apart from other security, the bank guarantee limit of Rs. 2.65 crore was sanctioned to the corporate debtor against stipulated margin of 20% which was in the form of an FDR by the bank. Hence, FDR formed part of the security credit in favour of the bank by the corporate debtor for due repayment of various financial facilities. The bank further claimed that the loan account of corporate debtor maintained with the bank was not classified as NPA till the date of initiation of CIRP. Hence, the amount of FDR was not adjusted towards the recovery of banks dues. 8. It is further stated by the respondent that loan account of the corporate debtor was classified as NPA on 21ST May, 2018 with retrospective date as 31st March, 2018 and the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying with the bank in the form of security credit by the corporate debtor. The bank guarantee issued on the request of corporate debtor and no payment was made by the creditor hence the bank has charge/security over FDR and the said money cannot be asked by the RP to be brought in the account of corporate debtor for utilization of said money during CIRP of CD. 12. After going through the contentions raised by both the parties and the documents placed on record in support of thereof and in the light of provisions Section 14 of the Insolvency and Bankruptcy Code more particularly 14(1)(c) clearly covers the same security as claimed by the bank. The financial creditor being the sole member of the COC though passing resolution by 100% for an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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