# In the matter of Sajeve Bhushan Deora Vs. Axis Bank Ltd. & Ors. CA(AT)(Ins) No. 741 of 2019

> NCLAT judgment dated 2019-11-14. Citation: TCN-2019-NCLAT-00135. The Resolution Professional (RP) filed an appeal against the Adjudicating Authority's order,…

- **Court:** NCLAT
- **Order date:** 14 Nov 2019
- **Citation:** TCN-2019-NCLAT-00135
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sajeve-bhushan-deora-vs-axis-bank-ltd-ors-ca-09709f05

## Summary

### Background

The Resolution Professional (RP) filed an appeal against the Adjudicating Authority's order, which denied directions to Axis Bank to release margin money held as fixed deposits against letters of credit established on behalf of the Corporate Debtor, Noslar International Limited. The RP claimed the release was necessary to keep the Corporate Debtor a going concern and to meet Corporate Insolvency Resolution Process (CIRP) costs. The Adjudicating Authority had previously dismissed the RP's application.

## Facts

The Resolution Professional (RP) for Noslar International Limited filed an appeal against an order of the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench). The RP had filed an application (CA 622/2019) before the Adjudicating Authority seeking directions to Axis Bank to release margin money held as fixed deposits against letters of credit established by Axis Bank on behalf of the Corporate Debtor. The RP argued that the release of funds was necessary to keep the Corporate Debtor a going concern and to meet CIRP costs. The Adjudicating Authority dismissed the application. The Appellant stated that the Corporate Debtor was not in production when CIRP process was initiated. The Appellant also stated that today is the last date for this CIRP process

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in refusing to direct Axis Bank to release the …

**Ratio:** The Adjudicating Authority has the discretion to decide whether to release assets,

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**Reasoning:** The appellate tribunal reasoned that the Adjudicating Authority took a conscious decision

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**Interpretation:** The decision highlights the importance of preserving the assets of the

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**Application:** In this case, the appellate tribunal upheld the Adjudicating Authority's

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## Parties

- **Judges:** A.I.S. C…; KanthiNar…
- **Appellants:** Sajeve Bhushan…
- **Respondents:** Noslar Internation…; Axis Ban…

## Timeline

- **2019-11-06 — Directions…**: The Appellant filed an Affidavit giving particulars of the funds and resources available…
- **2019-11-14 — Hearing…**: The appellate tribunal heard the learned Resolution Professional, who is also the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 25 — Duties of resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-25)

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