TaxTMI 
TaxTMI 
2020 (8) TMI 574
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....and Ms. Surbhi Gupta, Advocates For the Respondents: Ms. Misha, Mr. Vaijayant Paliwal and Ms. Moulshree Shukla, Advocates for RP ORDER Appellant - 'Morgan Securities & Credits Pvt. Ltd.' (Financial Creditor) in their respective appeals have challenged common order dated 11th November, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench whereby its Miscellaneous Application seeking release of amount of Rs. 20 Crores deposited with the Registrar General of the Hon'ble High Court of Delhi upon invocation of the Bank Guarantee issued by the Allahabad Bank, in favour of it, has been rejected. 2. The Adjudicating Authority held that the amount will be deposited with the Resolution Professional of 'V....
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....Corporate Insolvency Resolution Process, an application under Section 34 of the Arbitration and Conciliation Act, 1996 was filed by the Corporate Debtor, which was rejected and the amount of Rs. 20 Crores was ordered to be retained in the account of the Registrar General of Honb'le High Court of Delhi, subject to further order as may be passed in insolvency proceedings. 8. An appeal under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 was moved by 'Morgan Securities & Credits Pvt. Ltd.' only with regard to the part of the order passed by the Single Bench of the Hon'ble High Court of Delhi relating to the fixed deposit amount of Rs. 20 crore which was ordered to be retained with the Registrar General subject to the decisio....
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....rgan Securities & Credits Pvt. Ltd.' appeared and opposed it. It was submitted, as Appellant submitted before this Appellate Tribunal, that the Bank Guarantee dated 6th December, 2013 furnished by Allahabad Bank to secure the payment of 'Morgan Securities & Credits Pvt. Ltd.' and is not asset of the Corporate Debtor because the Allahabad Bank has issued the Bank Guarantee without recourse to the Corporate Debtor. 11. It was further submitted on behalf of the Appellant - 'Morgan Securities & Credits Pvt. Ltd.' that the amount of Rs. 20 Crores was not covered under moratorium in terms of Section 14(3) of the I&B Code. 12. Stand of the Resolution Professional is that the Corporate Debtor furnished the Bank Guarantee in favour of the Regi....
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....d by way of Bank Guarantee was against the sum of Rs. 76.45 Crores awarded, therefore, said amount of Rs. 20 Crores, if payable to the Financial Creditor will be out of Rs. 76.45 Crores as awarded in its favour. Even if, it is accepted that said amount of Rs. 20 Crores, as deposited with the Registrar General of Delhi High Court, is meant for payment to the Appellant - 'Morgan Securities & Credits Pvt. Ltd.' against the awarded amount of Rs. 76.45 Crores, in light of the decision of Hon'ble Supreme Court in "Himachal Pradesh Housing & Urban Development Authority Vs. Ranjit Singh Rana, (2012) 4 SCC 505", we hold that the Bank Guarantee of Rs. 20 Crores given by the Bank on behalf of the Corporate Debtor, relates to the claim of the Appellant....