2020 (11) TMI 1047 - Tri - Insolvency and Bankruptcy

Whether the money i.e. ₹ 32 lakhs has been withdrawn from the account of the Corporate Debtor viz., M/S. A to Z Barter Private Limited, maintained at I-IDFC Bank, Branch Mayapuri? - HELD THAT - In spite of the present application for depositing the amount withdrawn to the accounts of the CD, the respondents have not bothered to deposit an amount of ₹ 32 lakhs approximately. The respondents are directed to deposit an amount of ₹ 32 lakhs along with interest @ 12 % per annum from the date of the withdrawal and deposit the total amount to the accounts of the Corporate Debtor being maintained by the Resolution Professional within a period of 21 days from the date of this order - application disposed off.

Summary

Issues: Violation of Section 14 of the IBC, Non-compliance with depositing withdrawn amount, Direction to deposit amount with interest

In the judgment delivered by the National Company Law Tribunal, New Delhi, the issue revolved around the violation of Section 14 of the Insolvency and Bankruptcy Code (IBC) by the respondents. The Resolution Professional highlighted that during the Corporate Insolvency Resolution Process (CIRP), the respondents, as authorized signatories of the Corporate Debtor, withdrew significant amounts totaling approximately ?32 lakhs in contravention of the moratorium declared under Section 14 of the IBC. Despite repeated opportunities and a specific application requesting the deposit of the withdrawn amount back into the accounts of the Corporate Debtor, the respondents failed to comply by neither filing a reply nor submitting an affidavit to address the issue.

The Tribunal, after considering the submissions made by the Resolution Professional and the Respondents, issued a directive to the respondents to deposit the entire amount of ?32 lakhs, along with interest at the rate of 12% per annum from the date of withdrawal. The respondents were mandated to deposit this total sum into the accounts of the Corporate Debtor maintained by the Resolution Professional within a strict timeline of 21 days from the date of the order. Furthermore, the judgment required the Respondent(s) to file an affidavit of compliance in the Registry to confirm the deposit of the amount as directed.

Consequently, the Interlocutory Application (IA) presented before the Tribunal was deemed disposed of in accordance with the directives issued in the judgment. The decision emphasized the importance of upholding the provisions of the IBC, ensuring compliance with the moratorium regulations, and safeguarding the interests of the Corporate Debtor during the insolvency resolution process.