TaxTMI 
TaxTMI 
2021 (1) TMI 980
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....irection to the Respondent, i.e. Bank of India, to release an amount of Rs. 100 Lacs (Rupees One Hundred Lacs only) held in the "No Lien Account", for the purpose of Insolvency Resolution Process (CIRP) of M/S. Actif Corporation Ltd., i.e., Corporate Debtor Company. 2. It is a matter of record that the Corporate Debtor company is under CIRP vide order dated 26.11.2019 passed in CP (IB) 272/NCLT/AHM/2019, by this Bench. 3. The applicant submitted that in terms of the order dated 26.11.2019, a notice (FORM A) was released in the newspapers, inviting claims. In terms of the aforesaid notice, several financial creditors, including the respondent, Bank of India, has also filed its claim. 4. It is further stated that as....
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....said creditor has no right. 8. It is further stated that constrained with the wrongful action of the respondent in withholding an amount of Rs. 100 Lacs lying in No Lien Account of the Corporate Debtor maintained with the respondent, the present application is being made seeking directions to the respondent to release the amount of Rs. 100 Lacs and allow operations in the said amount for CIRP. 9. Respondent has filed its reply. 10. The Respondent, it its reply, stated that 10.1 the respondent along with UCO Bank, Oriental Bank of Commerce and Punjab National Bank are the secured creditors of the corporate debtor having a cumulative admitted debt of Rs. 522.49 Crore as admitted by the applicant itself. ....
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....ept in a no-lien account, which is not an account of the Corporate Debtor maintained with Bank of India; iv. At no point of time, has this amount been suggested to be a refundable amount. 10.5 It is submitted that one crore amount provided by the Cheque was not an asset of the Corporate Debtor. The Cheque was issued by Avazy Realcon and clearly not an amount paid from the books of the Corporate Debtor. The financial statements of the Corporate Debtor don't also classify Avazy Realcon as a creditor of the Corporate Debtor. There is no documentary evidence in the financial statements that this money was paid on behalf of the Corporate Debtor. It is therefore submitted that the payment of one crore has been wr....
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....transfer the money lying in the no lien account to a current account of the Corporate Debtor or any other account of the Corporate Debtor. It is clear that the Corporate Debtor does not own or have the power to operate a 'no lien account'. The relevant email is herein attached as Annexure A. Moreover, the banker's lien over money held in a customer's account is a statutory right. The only way that such statutory stipulation is not applicable is when the money is not in a customer's account and actually an asset of the bank itself. Therefore, it is humbly submitted that at the transfer of the money to the 'no lien account', being an account of the Respondent the title to the asset has been passed to that of the Re....