The appeal arises from an order dated 19th January 2021, passed by the National Company Law Tribunal, Ahmedabad Bench, in IA No. 653/2020 in C.P. (IB) No.-272/NCLT/AHM/2019. The Resolution Professional (RP) sought a direction to Bank of India to release Rs.100 Lakhs held in a 'no lien account' for the Corporate Debtor, Actif Corporation Limited. The Adjudicating Authority allowed the application. The Bank of India, as the appellant, contests this order, arguing that the amount belongs to a third party and is not recorded in the Balance Sheet as an asset of the Corporate Debtor. The RP argues that the amount was deposited by the Corporate Debtor to show bona fide towards a One Time Settlement (OTS) proposal, and since the OTS failed, the amount should be considered an
…On 12.07.2017, the Corporate Debtor, Actif Corporation Limited, furnished a cheque for Rs.1 Crore to the Respondent/Bank of India along with a letter requesting to keep the proceeds in a 'No Lien Account'. The amount was intended to show commitment towards a resolution plan (One Time Settlement proposal) and was to be adjusted/utilized upon approval of the resolution plan. The Corporate Debtor committed to bring the balance amount to the extent of 10% as per their commitment once approval was accorded by the lead bank. The OTS proposal failed. The Corporate Debtor deposited Rs. 1 Crore on 15.07.2017. CIRP was initiated on 26.11.2019. The RP appraised the CoC on 08.09.2020 that Rs.1 Crore was in a 'no lien account'. The Appellant Bank did not release the amount, leading
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Actif Corporation Limited sent a letter to Bank…
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The appeal arises from an order dated 19th January 2021, passed by the National Company Law Tribunal, Ahmedabad Bench, in IA No. 653/2020 in C.P. (IB) No.-272/NCLT/AHM/2019. The Resolution Professional (RP) sought a direction to Bank of India to release Rs.100 Lakhs held in a 'no lien account' for the Corporate Debtor, Actif Corporation Limited. The Adjudicating Authority allowed the application. The Bank of India, as the appellant, contests this order, arguing that the amount belongs to a third party and is not recorded in the Balance Sheet as an asset of the Corporate Debtor. The RP argues that the amount was deposited by the Corporate Debtor to show bona fide towards a One Time Settlement (OTS) proposal, and since the OTS failed, the amount should be considered an
…On 12.07.2017, the Corporate Debtor, Actif Corporation Limited, furnished a cheque for Rs.1 Crore to the Respondent/Bank of India along with a letter requesting to keep the proceeds in a 'No Lien Account'. The amount was intended to show commitment towards a resolution plan (One Time Settlement proposal) and was to be adjusted/utilized upon approval of the resolution plan. The Corporate Debtor committed to bring the balance amount to the extent of 10% as per their commitment once approval was accorded by the lead bank. The OTS proposal failed. The Corporate Debtor deposited Rs. 1 Crore on 15.07.2017. CIRP was initiated on 26.11.2019. The RP appraised the CoC on 08.09.2020 that Rs.1 Crore was in a 'no lien account'. The Appellant Bank did not release the amount, leading
…Actif Corporation Limited sent a letter to Bank…
The Corporate Debtor…