TaxTMI 
TaxTMI 
2024 (12) TMI 799
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....nical ) ] The present appeal is filed against the impugned order dated 03.05.2021 in I.A. No. 696 of 2020 wherein the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench, Ahmedabad) in CP(IB) No. 266/NCLT/AHM/2019 has allowed the said application for release of an amount of Rs. 1 Crore held in the "No Lien Account" by the Appellant. 2. The application for initiation of Corporate Insolvency Resolution Process (hereinafter called as 'CIRP') in CP(IB) No. 266/NCLT/AHM/2019 was allowed and the Corporate Debtor, M/s Jaybharat Textiles & Real Estate Ltd. was admitted into CIRP on 03.01.2020. The Interim Resolution Professional (hereinafter called as 'IRP') was appointed who called for the claims and thereafter constituted....
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....convenience, Section 18(f) is reproduced herein below: Section 18(f) :- take control and custody of any asset over which the Corporate Debtor has ownership rights as recorded in the balance sheet of the Corporate Debtor, or with information utility or the depository of securities or any other registry. that records the ownership of assets including i. assets over which the Corporate Debtor has ownership rights which may be located in a foreign country; ii. assets that may or may not be in possession of the corporate debtor; iii. tangible assets, whether movable or immovable; iv. intangible assets including intellectual property; v. securities including shares held in any subsidiary of th....
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....ilment. iii) The Corporate Debtor has not shown under what capacity this amount of Rs. 1 Crore has been received from Wellworth. iv) Banker's lien over money lying is a statutory right. The money lying in the account is actually asset of the Bank itself. v) The amount of Rs. 1 Crore was paid for showing the bona-fides of the Corporate Debtor, in pursuance to a settlement proposal. vi) The "No Lien Account" is an account of the Bank itself wherein Bank receives money from the various sources. 5. In its oral and written submissions, the Learned Counsel for the Respondent submitted that the amount of Rs. 1 Crore was paid by the Corporate Debtor to show its bona-fide towards 'One Time Settlement' (hereinaf....
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....when a revised offer was made by them. The deposit was not towards satisfaction of the debt in question and that is precisely why the High Court had directed that the deposit would be treated to be a deposit in the Registry of the High Court. 12. Going by the law laid down by this Court in Axis Bank the 'secured creditor would be entitled to proceed only against the secured assets" mentioned in the notice under Section 13(2) of the SARFAESI Act. In that case, the deposit was made to maintain an appeal before the DRAT and it was specifically held that the amount representing such deposit was neither a 'secured asset' nor a 'secured debt' which could be proceeded against and that the appellant before DRAT was enti....
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....ad failed. Once the CIRP was initiated, keeping in view that the OTS had failed, the amount lying in the 'no lien account' belongs to the 'Corporate Debtor' and under Section 18(f) of the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as 'The Code'), the IRP/RP is obligated to take control and custody of all the assets and properties of the 'Corporate Debtor'. Further, the Bank could not have appropriated this money once the period of Moratorium has commenced on 26.11.2019. As per Section 3(27), 'Property' includes money and therefore RP's action of claiming the money lying in the 'no lien account' of the 'Corporate Debtor' is within the provisions of Section 18(f) of the Code. The contention of the Learned Counsel for the A....