2018 (3) TMI 1945 - AT - Insolvency and Bankruptcy

Recovery during the moratorium period - debit of any amount from Corporate Debtor account during moratorium period - HELD THAT - The appellant cannot debit any amount from the Corporate Debtor s account after the order of moratorium, as it may amount to recovery amount in spite of the order of moratorium passed by the Adjudicating Authority in violation of Section 14 of the Insolvency and Bankruptcy Code. Post the matter for further hearing on 26th March, 2018.

Summary

The Appellate Tribunal held that the appellant cannot debit any amount from the Corporate Debtor's account after the moratorium order. However, the Financial Creditor can incorporate interest under RBI Guidelines separately. The Bank cannot freeze the account or prohibit the Corporate Debtor from withdrawing funds for day-to-day operations through the Resolution Professional. The matter is adjourned for further hearing on 26th March, 2018, allowing parties to file additional affidavits.