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TMI Blog2020 (10) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "IB Code") and regulations there under read with Rule 11 of the National Company Law Tribunal Rules, 2016 (hereinafter referred to as "Rules") with the prayers to give appropriate directions to Respondent Bank to release, refund and transfer the amount of the fixed deposit amounting to Rs. 65,02,500/-(Rupees Sixty Five Lakhs Two Thousand Five Hundred Only) along with accrued interest till date of payment, to the bank account of the Corporate Debtor. 2. The facts of the case are as under: 2.1. It is a matter of record that vide order dated May 02 2019, this bench admitted a petition being numbered CP(IB) 157/7/NCLT/AHM/2018 under section 7 of the IB Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Applicant has sent a legal notice dated September 16, 2019 requesting the Respondent Bank to release and / or refund the amount of the fixed deposit so placed with the Respondent Bank. 2.3. It is submitted by the RP that as per Section 18(1) of the IB Code, the RP is required to take control and the custody of any asset over which the Corporate Debtor has ownership rights as recorded in the Balance Sheet of the Corporate Debtor. 3. The Respondent Bank has filed affidavit in reply: 3.1 The Respondent Bank has submitted that the present IA seeking directions on the Respondent Bank for releasing the amount of the fixed deposit along with interest is not maintainable in the eye of law, in view of the existence of sovereign guaran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... main in full force during the period that would be taken for the performance of the export obligations by the Corporate Debtor under the said notification and it shall continue to be enforceable till the obligations under the said notification are fully discharged to the satisfaction of Deputy Commissioner of Customs. The terms of Bank Guarantee issued by the Bank are linked with the loss or damage caused or suffered by the President of India by reason of non-fulfillment of the export obligations under the aforesaid notification or by the virtue of reason of breach of any of the terms and conditions of the Bond given by the Corporate Debtor to the Customs authorities. Therefore, the present Bank Guarantees issued by the Respondent Bank are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 38 of the IBC, which is a subsequent Act to the Tea Act, 1953, shall be applicable and the provisions of the IBC shall have an over-riding effect over the Tea Act, 1953. Any other view would frustrate the object and purpose of the IBC. If the submission on behalf of the appellant that before initiation of proceedings under section 9 of the IBC, the consent of the central Government as provided under section 16G(1)(c) of the Tea Act is to be obtained, in that case, the main object and purpose of the IBC, namely, to complete the 'Corporate Insolvency Resolution Process' in a time -bound manner, shall be frustrated." 5. Accordingly, this Adjudicating Authority hereby directs the Respondent Bank to release the aforesaid amount of Rs. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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