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TMI Blog2024 (11) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... he ends of justice be served in directing the Axis Bank and other lenders, who are Appellants before us, to keep the amount which is to be reversed under the impugned order in a separate interest bearing account so that in the event amount is finally decided to be reversed the interests of the corporate debtor are protected. Appellant being themselves banks and financial institutions there can be no apprehension that the banks shall not reverse the amount in the account of the corporate debtor in event any final decision is taken in the appeal to that effect. The above interim management shall protect the interest of all the parties. List these Appeals on 03.12.2024 at 2.00 P.M. for hearing and disposal. - [ Justice Ashok Bhushan ] Chairperson And [ Barun Mitra ] Member ( Technical ) For the Appellant : Mr. Diwakar Maheshwari, Ms. Pratiksha Mishra, Mr. Shreyas Edupuganti, Mr. Karan Bhootra, Mr. Shantanu Parashar, Advocates For the Respondents : Mr. Kunal Tandon, Ms.Richa Sandilya, Ms. Natasha Singh, Advocates for Star India Pvt. Ltd. Ms. Anshula Grover, Advocate for R-10 ORDER Ashok Bhushan , J. All these Appeals have been filed against the same order of the Adjudicating Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Appeal shall be reversed. The said application was subsequently dismissed as not pressed. 2.2. IA No.2340 of 2023 was filed for seeking impleadment of the Appellant and the Respondent No.3 in the Company Appeal. Impleadment Application was subsequently amended for impleading all lenders i.e. Appellant, Respondent No.1 and Respondent Nos.4 to 7 as parties to the Company Appeal. On 31.05.2023, Contempt Case was dismissed as withdrawn. Appellant further appropriated funds from the corporate debtor s account towards its dues and entitlements on 01.06.2023. Further, on request of Respondent Nos.3 to 6 who also had similar contractual rights as the Appellant, the Appellant released funds in favour of the Respondent Nos.3 to 6. Suspended Director filed an Additional Affidavit in the IA praying that the Appellant and the Respondent Nos. 3 to 6, who had appropriated funds from the account of the Corporate Debtor, be directed to reverse such transactions. On 12.06.2023 Appellate Tribunal passed an order directing the Appellant and the Respondent No.3 not to withdraw any monies from the account of the corporate debtor. Respondent No.11 challenged the order dated 12.06.2023 before the Hon bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urred in the ordinary course of business to protect the Corporate Debtor and to keep it as a going concern would be safeguarded. 2.4. Paragraph 84 of the impugned order contains directions and orders in the above three applications which are as follows:- 84. With these observations, we pass the following order on the prayers sought in the three captioned applications: IA/4844/2023 i. Prayer 'c' seeking 10.08.2023 as the cut-off date for CIRP-related activities is rejected. ii. As regards prayer 'b' seeking clarification on liabilities incurred during the stay period, we note that the relief sought herein is incidental to prayer 'c' which has been rejected. Accordingly, prayer 'b' has become inconsequential. Thus, IA/4844/2023 is dismissed. Intervention Petition 57/2023 iii. Intervention Petition No. 57/2023 is allowed. /126/2024 iv. Prayers 'a', 'b', 'd', 'e' and 'f being interconnected to each other are allowed; v. Prayer 'c' seeking direction to the RP to maintain the account of the Corporate Debtor in a bank other than Respondents 2 to 6 is rejected; vi. Prayer 'g' seeking direction to Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no error in Axis Bank and other lenders appropriating the amount from the accounts of the corporate debtor. Counsel for the Appellant further contends that the IAs filed by the suspended management before the Appellate Tribunal as well as before the Hon ble Supreme Court for reversing the transaction were rejected, hence, the said issue cannot be re-agitated before the Adjudicating Authority. 5. Counsel for the Resolution Professional submits that the Resolution Professional handed over the management due to the stay of the order of the NCLT. After the stay of the order by which IRP was appointed, IRP could not have functioned. It is contended that several complaints have been filed against the IRP before the IBBI and observations made by the Adjudicating Authority in paragraph 78 are prejudicial to the rights and interests of the Resolution Professional. IBBI has commenced proceedings against the RP and unless interim protection is not granted RP shall suffer irreparable loss. 6. Learned Senior Counsel for the Respondent No.1- ARCIL submits that after admission of application under Section 7 on 22.02.2023, Moratorium was enforced and even if the order is stayed on 07.03.2023, Mora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Learned Counsel for the parties has jointly prayed that the appeal be fixed on an early date and disposed of finally. 11. Issue notice. Notice on behalf of Respondent No.1- ARCIL as well as the Suspended Director having been accepted, no notice need to be issued. Axis Bank and other lenders who are Appellants have already filed appeal and are Respondents to the different Appeals, no notice need be issued to ARCIL and suspended director. Reply to the Appeals be filed within two weeks. Rejoinder, if any, be filed within one week thereafter. 12. Counsel for the Appellant has also prayed that the interim protection be granted to the Appellant since under the directions of the Adjudicating Authority, Axis Bank and other lenders are required to reverse the amount by 29.10.2023. It is contended that the amounts which have been taken from the account of the corporate debtor was on the premise that moratorium is not continuing and the said amount are with the Axis Bank and other lenders for more than one year. Amount being lying with the Appellants who are the Banks, no apprehension can be raised by the Respondents that the Appellant shall not be able to reverse the amount if any such fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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