TaxTMI 
TaxTMI 
2017 (11) TMI 1184
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....tion panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor." 2. The Interim Resolution Professional appointed is now functioning as Resolution Professional as decided by the committee of creditors in the first meeting held on 22.08.2017. 3. It is averred that under Section 17 (1) (d) of the Code, the financial institutions maintaining the accounts of the corporate debtor have to act on the instructions of the IRP in relation to such accounts and furnish all information relating to the corporate debtor available with them to him. The respondent i.e. Indian Overseas Bank, Hosur Branch is one of the financial creditor of the corporate debtor and constitu....
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....ch as the dues of the corporate debtor in the books of respondent bank exceeds the amount available in the balance in the current account and therefore, they exercised the rights of set off and appropriated the amount towards the dues payable to the bank. They also requested to the applicant that the revised claim would be submitted by Rajiv Circle branch, New Delhi of the respondent bank. Copy of the said email is at Annexure A-10. 8. In view of the above, the applicant sent a letter dated 01.09.2017 to the respondent bank to transfer the amount of Rs. 6,65,13,958/- through RTGS to the bank account of the corporate debtor maintained with the Corporation Bank and cheque No.870093, dated 01.09.2017 was enclosed with the said letter Annexure A-11. Thereafter the respondent again sent another letter dated 31.8.2017 as an afterthought that the company is maintaining the current account with the Hosur Branch, which was never brought to the notice of the bank, even though the account was opened and operative from October, 2013 in which the balance as on date was Rs. 6.63 crores. On scrutiny of the record, it was observed by the bank that the corporate debtor had given a false declaratio....
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....nce of such account came to be known to the respondent only upon receipt of information from IRP vide letter dated 29.07.2017 addressed to Hosur branch of the respondent and received on 05.08.2017 at the branch office. The corporate debtor opened the account with a false declaration that it was not enjoying any credit facility with any other bank or any other branch of the respondent bank. This fact was not known to the respondent before receiving email from the applicant. Under the account opening form filled by the corporate debtor, when the current account was opened in the year 2002, it was undertaken that Corporate Debtor would inform the respondent Bank in writing, as soon as any other credit facility was availed from any other bank or any other branch of the bank. The current account at Hosur branch was opened with a different customer Id and with introduction of the local small trader on 17.10.2013 concealing and suppressing the facts. The respondent has already obtained the explanation from the company for such violation. 13. Otherwise, it is stated that the amount available in the current account of the corporate debtor at Hosur branch of the respondent was neither a sec....
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....orate debtor Annexure A-13 filed by the applicant-resolution professional for the period from 21.07.2017 to 30.08.2017 shows that despite the order of appointment of interim resolution professional, the corporate debtor has withdrawn by cheques the total amount of about Rs. 2,89,00,000/- from 28.07.2017 to 05.08.2017, which the corporate debtor, in whose presence the orders were passed for admission and appointment of the interim resolution professional, has apparently withdrawn the huge amount despite such appointment and prohibition contained in the Code. How could the bank account of corporate debtor be operated without any authority from the interim resolution professional after his appointment? 21. Learned counsel for respondent bank, however, submits that the letter written by the applicant as interim resolution professional on 29.07.2017 was received by the Hosur branch of the bank on 05.08.2017 and thereafter no withdrawals were permitted. In any case, on 28.07.2017, there was a balance in the current account of the corporate debtor to the tune of Rs. 2,29,78,750.22 and not much of the damage was done because of deposits from different customers to whom the goods were sold....