9911796707
TMI Blog2019 (8) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... e Insolvency Resolution Process' was initiated against 'M/s. IAP Company Pvt. Ltd.'- ('Corporate Debtor') on 28th February, 2018 and order of 'Moratorium' was passed. However, the 'Resolution Professional' noticed that the Appellant- 'Canbank Factors Limited' despite 'Moratorium' period in existence, proceeded with the recovery of dues by way of deduction of its instalments through exercising its right to lien on the accounts of the 'Corporate Debtor' in support of which letter dated 10th July, 2018 was placed by the 'Interim Resolution Professional'. 2. After receipt of the said letter dated 10th July, 2018, the 'Interim Resolution Professional' asked the Appellant- 'Canbank Factors Limited' not to take any action of recovery during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as letter of guarantee dated 30th May, 2013 backed by power of attorney of the same date in favour of the Appellant/ 'Financial Creditor' with authorization letters issued on several dates. Based on the said documents, the sale bill factoring limits with recourse for a sum of Rs. 10,00,00,000 (Rupees Ten crore only) was initially granted. Subsequently, it was also enhanced to Rs. 13 crores on 14th July, 2014 and on 11th November, 2016 it was enhanced to Rs. 20 crore at the request of the 'Corporate Debtor'. However, since the 'Corporate Debtor' had failed to repay the outstanding dues towards the said factoring facilities availed by it taking into consideration the 'Reserve Bank of India' guidelines/regulations, the account of 'Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant/ 'Financial Creditor' is entitled to exercise its lien over the amount of bills not factored until and unless the entire remaining outstanding amount is fully paid by the 'Corporate Debtor'. It is stated that the aforesaid lien was imposed during the year 2017 i.e., much prior to the commencement of the Adjudicating Authority proceedings and the demand to make payment had also been made much earlier to the commencement of the 'Moratorium' period and therefore, Section 14 (1) (c) would not come into play in the present facts and circumstances of the case. 8. It was also submitted that on perusal of the ledger account, it is very much apparent that no amount whatsoever has ever been recovered or deducted during the 'Moratorium' period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holds a statutory right towards the lien amount of Rs. 7,52,63,564/-, the Appellant who is a 'Financial Creditor' is entitled to exercise its lien over the amount of bills not factored until and unless the entire remaining outstanding amount is fully paid by the 'Corporate Debtor'. 13. The plea has been taken that the aforesaid lien having imposed during the year 2017 i.e., much prior to the commencement of the proceedings before the Adjudicating Authority (28th February, 2018) and the demand to make payment had also been made much earlier to the commencement of the 'Moratorium' period and, therefore, Section 14 (1) (c) would not come into play. 14. However, we do not accept such plea taken by the Appellant as 'Moratorium' will be appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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