The appeal was filed against an order dated 03.05.2021, where the Adjudicating Authority allowed IA No. 696 of 2020, directing the release of Rs. 1 Crore held in a 'No Lien Account' to the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against Jaybharat Textiles & Real Estate Ltd. on 03.01.2020. An Interim Resolution Professional (IRP) was appointed, who then constituted a Committee of Creditors (COC). The IRP initiated steps to take over the assets of the Corporate Debtor and corresponded with the Appellant (Bank of India) to allow the operation of the 'No Lien Account' and release the amount for the purpose of CIRP. The issue was discussed in the 3rd COC meeting on 05.09.2020, but the Appellant refused to release the amount.
…1. An impugned order dated 03.05.2021 was passed in IA 696/2020, directing the release of Rs. 1 Crore.
2. CIRP was initiated against Jaybharat Textiles & Real Estate Ltd. on 03.01.2020.
3. The Appellant, Bank of India, held Rs. 1 Crore in a 'No Lien Account'.
4. The Appellant refused to release the amount, claiming it was not an asset of the Corporate Debtor.
5. The Appellant filed a claim as a Financial Creditor, which was admitted by the IRP.
6. The Respondent (Resolution Professional) filed IA No. 696 of 2020 for the release of the amount.
7. The amount of Rs. 1 Crore was paid by the Corporate Debtor to show its bona fides towards an OTS proposal on 16.07.2017.
8. The OTS proposal did not materialize, and the bank did not adjust/encash the amount.
9. The cheque for Rs.
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Corporate Debtor paid…
Corporate Debtor stated that the amount may be…
The appeal was filed against an order dated 03.05.2021, where the Adjudicating Authority allowed IA No. 696 of 2020, directing the release of Rs. 1 Crore held in a 'No Lien Account' to the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against Jaybharat Textiles & Real Estate Ltd. on 03.01.2020. An Interim Resolution Professional (IRP) was appointed, who then constituted a Committee of Creditors (COC). The IRP initiated steps to take over the assets of the Corporate Debtor and corresponded with the Appellant (Bank of India) to allow the operation of the 'No Lien Account' and release the amount for the purpose of CIRP. The issue was discussed in the 3rd COC meeting on 05.09.2020, but the Appellant refused to release the amount.
…1. An impugned order dated 03.05.2021 was passed in IA 696/2020, directing the release of Rs. 1 Crore.
2. CIRP was initiated against Jaybharat Textiles & Real Estate Ltd. on 03.01.2020.
3. The Appellant, Bank of India, held Rs. 1 Crore in a 'No Lien Account'.
4. The Appellant refused to release the amount, claiming it was not an asset of the Corporate Debtor.
5. The Appellant filed a claim as a Financial Creditor, which was admitted by the IRP.
6. The Respondent (Resolution Professional) filed IA No. 696 of 2020 for the release of the amount.
7. The amount of Rs. 1 Crore was paid by the Corporate Debtor to show its bona fides towards an OTS proposal on 16.07.2017.
8. The OTS proposal did not materialize, and the bank did not adjust/encash the amount.
9. The cheque for Rs.
Corporate Debtor paid…
Corporate Debtor stated that the amount may be…