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TMI Blog2022 (9) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, passed by the Learned Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench, Ahmedabad), in IA 653/2020 in C.P. (IB) No.- 272/NCLT/AHM/2019, wherein the Adjudicating Authority has allowed the Interim Application preferred by the Resolution Professional ('RP') seeking a direction to Bank of India/the Appellant herein to release an amount of Rs.100Lakhs/- held in the 'no lien account' for the purpose of CIRP of the 'Corporate Debtor Company'/'M/s. Actif Corporation Limited'. The Adjudicating Authority allowed the application observing as follows: "11. Gone through the application and the reply. It is noted that the Corporate SDebtor, to show their commitment and banafide towards reolution plan (i.e., one time settlement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vides that assets shall not include assets owned by a third party in possession of the 'Corporate Debtor' held under trust or under contractual arrangement including bailment. The 'Corporate Debtor' has not shown under what capacity this amount Rs.1Crore/- was received from M/s. Avazy Realcom Private Limited and if it is under some contractual arrangement then it would not be an asset of the 'Corporate Debtor'. It is submitted that 'Bankers Lien' over money held in a customer's account is a Statutory Right. The amount of Rs.1Crore/- was paid for showing the bona fide of the 'Corporate Debtor' in pursuant to a Settlement Proposal. This amount was delinked from the proposal and was supposed to be put into a 'no lien account', which is not an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion precedent for the amount to be considered as property of the Bank was the approval of the OTS/Resolution Plan. However, in the absence of the OTS/Resolution Plan being approved, the Bank had no right on the said money. The amount of Rs.1Crore/- was paid at the behest of the 'Corporate Debtor' and hence the same is to be treated as the property of the 'Corporate Debtor'. The Appellant Bank itself admits that the amount was paid by the 'Corporate Debtor' through another Company to show their bona fide towards OTS. The purpose of the 'no lien account' is to avoid realisation of funds lying in such an account and therefore the Bank has no right over such money as the same was deposited with a specific understanding that the said money shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated to be with the Registry of the High Court. 13. On the strength of the law laid down by this Court in Axis Bank, in our view, the appellants are entitled to withdraw the sum deposited by them in terms of said order dated 11.10.2017. Their entitlement having been established, the claim of the appellants cannot be negated by any direction that the money may contrinute to be in deposit with the Bank." 5. It is contended that the 'Claim' of the Bank that money lying in 'no lien account' of the 'Corporate Debtor' are assets of the Bank, is baseless. 6. Heart both sides at length. 7. The brief point that falls for consideration in this Appeal is whether the amount of Rs.1Crore/- lying in the 'no lien account' belongs to the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ludes money and therefore RP's action of claiming the money lying in the 'no lien account' of the 'Corporate Debtor' is within the provisions of Section 18(f) of the Code. The contention of the Learned Counsel for the Appellant Bank that the Bankers lien over the money held in a customer's account is a Statutory Right, is unable, keeping in view the facts of the attendant case and also that CIRP had commenced on 26.11.2019, and having regard to the fact that the amount was deposited with a specific understanding that the amount shall not be used by the Bank until approval of OTS. Admittedly, the said amount was paid at the behest of the 'Corporate Debtor' by a third party and it was lying with the Bank for more than five years. 9. The subm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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