Transfer of registry funds to Settlement Account under Scheme of Arrangement permitted to facilitate settlement of creditor and investor claims.

Application sought transfer of Rs. 84 crores with interest from court registry to a Settlement Account under an approved Scheme of Arrangement; the Scheme had been approved by the NCLT which recorded that enforcement and depositor-protection authorities supported the Scheme with reservations about parallel proceedings. The Scheme expressly does not override orders of other courts or authorities and contemplates applications to give effect to orders of such forums; permitting the transfer was found to further justice and facilitate settlement of creditor and investor claims, and the application and related writ petition were disposed.

---

---

Issues: (i) Whether Interim Application (St.) No. 24405 of 2025 seeking transfer of Rs.84 crores with accrued interest from the Registry of the High Court to the Settlement Account under the Scheme of Arrangement approved by the NCLT and consequential disposal of Writ Petition No. 2187 of 2015 should be allowed.

Analysis: The Scheme of Arrangement has been approved by the NCLT, which recorded that the sanction of the Scheme shall not override or affect subsisting attachment orders or the continuation of criminal proceedings and envisaged that applications under the Scheme be decided by respective Courts or Authorities. The present application is an application filed pursuant to the approved Scheme seeking transfer of funds deposited in the Registry to the Settlement Account as defined in the Scheme. Allowing the application would give effect to the NCLT-approved Scheme and substantially advance settlement of creditors' and investors' claims. The pendency of related proceedings was disclosed to the NCLT and the State's EOW had been taken into account in the NCLT order. Having regard to the Scheme and the NCLT approval, permitting the registry transfer in accordance with the Scheme serves the interest of justice and furthers the settlement of outstanding claims.

Conclusion: Interim Application (St.) No. 24405 of 2025 is allowed in terms of prayer (a); Writ Petition No. 2187 of 2015 is disposed of by quashing and setting aside the Impugned Notice dated 28.02.2015 and directing transfer of Rs.84 crores with accrued interest to the Settlement Account in accordance with the Scheme within the time stipulated.

---