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TMI Blog2019 (6) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... he value of such property is not less than the amount equivalent to twice the amount of the debt. During the Moratorium period, the assignee also cannot deduct any amount from the assets of the Corporate Debtor . The Explanation below Section 18 does not include the assets generated from the rent paid by the lessee (tenants) . As the premises belongs to the Corporate Debtor , the lessee pays rent in favour of the Corporate Debtor , though as per the agreement, the right of LICHFL is only that of an assignee which cannot recover or deduct any amount during the period of Moratorium . Application dismissed. - I.A. No. 1809 of 2018 IN Company Appeal (AT) (Insolvency) No. 646 of 2018 - - - Dated:- 22-1-2019 - Mr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues only after authorization of the Resolution Professional . The bank account(s) of the Corporate Debtor be allowed to be operated for day-to-day functioning of the company such as for payment of current bills of the suppliers, salaries and wages of the employees /workmen electricity bills etc. 3. This Interlocutory Application has been preferred by the Appellant for modification of the aforesaid order dated 29th October, 2018. 4. Learned Senior Counsel appearing on behalf of the Appellant submits that the Corporate Debtor has availed certain credit facilities from LIC Housing Finance Limited ( LICHFL for short). The said loans have been availed against rental income of the Corporate Debtor , as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant submits that the monthly instalment with regard to the abovementioned loan accounts are payable and the same are discharged in terms of various assignment deeds executed between the Corporate Debtor and LICHFL . The Corporate Debtor has also entered into various tripartite agreements with the tenants and LICHFL in terms of which the rent payable by each tenant is deposited in an Escrow Account maintained with Axis Bank, Mylapore Branch, Chennai, Tamil Nadu. 6. According to learned counsel for the Appellant, after deducting the monthly instalment payable, LICHFL releases the excess amount which is accordingly utilised by the Corporate Debtor for day to day operational expenses including but not limited to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... occupied by or in the possession of the corporate debtor. 9. It was submitted that in view of the order of Moratorium passed by the Adjudicating Authority, no amount can be paid to the Financial Creditor . 10. On the other hand, according to learned counsel for the Appellant, in terms of Explanation below Section 18, the assets owned by a third party in possession of the Corporate Debtor held under trust or under contractual arrangements including bailment does not come within the meaning of the assets of the Corporate Debtor . 11. Reliance has been placed on Agreement for Assignment of Rent dated 25th October, 2016, wherein parties agreed as under: NOW THEREFOR IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to as Assignor and the first party to the agreement. LICHFL , a Company registered under the provisions of the Companies Act, 1956, has been shown as Assignee and the second party. 13. Section 20 of the I B Code deals with Management of operations of corporate debtor as going concern . As per sub-section (2) therein, the Interim Resolution Professional has the authority to raise interim finance provided that no security interest shall be created over any encumbered property of the Corporate Debtor without the prior consent of the creditors whose debt is secured over such encumbered property. However, no prior consent of the creditor shall be required where the value of such property is not less than the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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