Appellate Tribunal restricts Corporate Debtor's fund withdrawal during moratorium, allows Financial Creditor interest per RBI Guidelines. The Appellate Tribunal ruled that the appellant cannot withdraw funds from the Corporate Debtor's account during the moratorium period. However, the ...
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Appellate Tribunal restricts Corporate Debtor's fund withdrawal during moratorium, allows Financial Creditor interest per RBI Guidelines.
The Appellate Tribunal ruled that the appellant cannot withdraw funds from the Corporate Debtor's account during the moratorium period. However, the Financial Creditor can apply interest in accordance with RBI Guidelines. The Bank is not permitted to freeze the account or restrict the Corporate Debtor from accessing funds for daily operations under the Resolution Professional. The case is adjourned for additional affidavits to be filed by the parties by 26th March 2018.
The Appellate Tribunal held that the appellant cannot debit any amount from the Corporate Debtor's account after the moratorium order. However, the Financial Creditor can incorporate interest under RBI Guidelines separately. The Bank cannot freeze the account or prohibit the Corporate Debtor from withdrawing funds for day-to-day operations through the Resolution Professional. The matter is adjourned for further hearing on 26th March, 2018, allowing parties to file additional affidavits.
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