2019 (10) TMI 1372 - SCH - Insolvency and Bankruptcy

Maintainability of application u/s 7 of the Insolvency and Bankruptcy Code, 2016 - outstanding dues on the part of corporate Debtor or not - main plea taken by the Appellant is that there was no default on the part of the Corporate Debtor and therefore, the application under Section 7 was not maintainable - HELD THAT - Application for impleadment stands allowed. The order dated 18.10.2019 to mean that it will not come in the way of the Resolution Professional from drawing amounts that are necessary, in terms of the ESCROW Agreement dated 20.08.2009, from the frozen account so as to continue to run the Corporate Debtor as a going concern. Application disposed off.

Summary

The Supreme Court of India allowed the application for impleadment. The court clarified that the Resolution Professional can draw necessary amounts from the frozen account to run the Corporate Debtor as a going concern in accordance with the ESCROW Agreement dated 20.08.2009.