Bank of Baroda filed an appeal against an order passed by the Adjudicating Authority in I.A. No. 303 of 2018 in CP(IB) No. 53 of 2017, related to the Corporate Insolvency Resolution Process (CIRP) of ABG Shipyard Ltd. The Resolution Professional had filed an application seeking directions against the Bank of Baroda to deposit Rs. 9,73,83,818, which the bank had appropriated from fixed deposits maintained by the Corporate Debtor as margin money. The Adjudicating Authority directed the Bank to reverse the entry and return the appropriated amount.
ABG Shipyard Ltd. was undergoing Corporate Insolvency Resolution Process (CIRP). Bank of Baroda (Appellant) had appropriated Rs. 9,73,83,818 from fixed deposits (FDs) maintained by ABG Shipyard Ltd. as margin money. The Resolution Professional (RP) filed an application before the Adjudicating Authority, arguing that the appropriation violated the moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC). The RP contended that the Bank was aware of the CIRP initiated by ICICI Bank. The Bank argued that it had an agreement with ABG Shipyard and a bank guarantee was invoked on 17.06.2017, justifying the appropriation. The Adjudicating Authority ruled in favor of the RP, directing the Bank to reverse the appropriation. The Bank appealed this decision,
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A Bank Guarantee…
Application under…
Bank of Baroda filed an appeal against an order passed by the Adjudicating Authority in I.A. No. 303 of 2018 in CP(IB) No. 53 of 2017, related to the Corporate Insolvency Resolution Process (CIRP) of ABG Shipyard Ltd. The Resolution Professional had filed an application seeking directions against the Bank of Baroda to deposit Rs. 9,73,83,818, which the bank had appropriated from fixed deposits maintained by the Corporate Debtor as margin money. The Adjudicating Authority directed the Bank to reverse the entry and return the appropriated amount.
ABG Shipyard Ltd. was undergoing Corporate Insolvency Resolution Process (CIRP). Bank of Baroda (Appellant) had appropriated Rs. 9,73,83,818 from fixed deposits (FDs) maintained by ABG Shipyard Ltd. as margin money. The Resolution Professional (RP) filed an application before the Adjudicating Authority, arguing that the appropriation violated the moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC). The RP contended that the Bank was aware of the CIRP initiated by ICICI Bank. The Bank argued that it had an agreement with ABG Shipyard and a bank guarantee was invoked on 17.06.2017, justifying the appropriation. The Adjudicating Authority ruled in favor of the RP, directing the Bank to reverse the appropriation. The Bank appealed this decision,
…A Bank Guarantee…
Application under…