This case involves an appeal against an order passed by the Adjudicating Authority/National Company Law Tribunal, Chandigarh Bench, which directed the Appellant Bank (Indian Overseas Bank) to release the margin money of Rs. 51,27,591/- belonging to the Corporate Debtor (M/s Richa Industries Limited). The margin money was deposited by the Corporate Debtor to secure a Bank Guarantee in favor of M/s Tata Steel Processing & Distribution Limited. The Bank Guarantee was invoked during the moratorium period. The Resolution Professional demanded the margin money, but the Appellant Bank had already adjusted it towards the payment of the invoked Bank Guarantee.
Indian Overseas Bank (Appellant) is a financial creditor of Richa Industries Limited (Corporate Debtor). The Corporate Debtor availed loan facilities, including an irrevocable Bank Guarantee, and deposited Rs. 40,50,000 as margin money in the form of FDR to secure the Bank Guarantee. Tata Blue Steel Limited, an operational creditor, initiated CIRP against the Corporate Debtor. The Adjudicating Authority admitted the application on December 17, 2018, and declared a moratorium. The IRP was appointed on December 21, 2018. The Bank Guarantee, issued in favor of Tata Steel Processing & Distribution Limited, was invoked, and payment of Rs. 4,01,94,954 was made. The margin money, along with accrued interest, totaled Rs. 51,27,591. During CIRP, the Resolution Professional
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Application admitted by…
Interim Reso…
This case involves an appeal against an order passed by the Adjudicating Authority/National Company Law Tribunal, Chandigarh Bench, which directed the Appellant Bank (Indian Overseas Bank) to release the margin money of Rs. 51,27,591/- belonging to the Corporate Debtor (M/s Richa Industries Limited). The margin money was deposited by the Corporate Debtor to secure a Bank Guarantee in favor of M/s Tata Steel Processing & Distribution Limited. The Bank Guarantee was invoked during the moratorium period. The Resolution Professional demanded the margin money, but the Appellant Bank had already adjusted it towards the payment of the invoked Bank Guarantee.
Indian Overseas Bank (Appellant) is a financial creditor of Richa Industries Limited (Corporate Debtor). The Corporate Debtor availed loan facilities, including an irrevocable Bank Guarantee, and deposited Rs. 40,50,000 as margin money in the form of FDR to secure the Bank Guarantee. Tata Blue Steel Limited, an operational creditor, initiated CIRP against the Corporate Debtor. The Adjudicating Authority admitted the application on December 17, 2018, and declared a moratorium. The IRP was appointed on December 21, 2018. The Bank Guarantee, issued in favor of Tata Steel Processing & Distribution Limited, was invoked, and payment of Rs. 4,01,94,954 was made. The margin money, along with accrued interest, totaled Rs. 51,27,591. During CIRP, the Resolution Professional
…Application admitted by…
Interim Reso…