2020 (2) TMI 1495

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....es to Corporate Insolvency Resolution Process (in short 'CIRP') proceeding pending against ABG Shipyard Ltd. 2. Respondent had filed the said application before the Adjudicating Authority and after hearing the parties, the Adjudicating Authority has directed the Bank to reverse the entry vide which the Bank had appropriated margin money which was kept in the form of three Fixed Deposits (in short 'FDs'). The Impugned order is short and may be reproduced to set out the facts and what has been held. It reads as under: .. "IA 303 of 2018 5.5.1 The instant IA is filed by the Applicant, the Resolution Professional of the Corporate Debtor, ABG Shipyard Limited under Section 50(5) read with Section 14 & 74 of the Code....

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....y and that the Respondent Bank would not be able to adjust the same if the application filed by ICICI bank is accepted by NCLT without the consent of the IRP/CoC. 5.5.5 It is further submitted by the Applicant that pursuant to the declaration of the moratorium, the lead bank i.e., ICICI bank had vide email dated 03.08.2017 forwarded the order dated 01.08.2107 to all banks including the Respondent. The Applicant has submitted that despite received the aforesaid requests and having complete knowledge about the existence of the moratorium, the Respondent Bank-the Bank of Baroda, has failed to reverse/roll back the amounts of the aforesaid fixed deposits wrongfully appropriated by the Respondent Bank. Findings: 5.5.6 ....

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....'Master Restructuring Agreement', the Bank had issued Bank Guarantees in favour of the Corporate Debtor assuring other parties. The three FDs, which are relevant for the present matter, had been issued and when a Bank Guarantee got invoked by third party on 17.06.2017 the Bank was required to honour the Bank Guarantee. It is stated that in view of this, the Bank had right to immediately appropriate the margin money which had been kept in the form of FDs. Leaned Counsel states that the Bank had internally given instruction to appropriate money on 01.08.2017 itself which was the date of Application under Section 7 of Insolvency and Bankruptcy Code, 2016 (in short 'IBC') got admitted. Learned Counsel stated that before coming to know of the ad....