# In the matter of Sindhu Cargo Services Private Limited

> NCLT judgment dated 2025-07-08. Citation: TCN-2025-NCLT-01167. The Resolution Professional of Sindhu Cargo Services Private Limited filed an application (IA…

- **Court:** NCLT
- **Order date:** 8 Jul 2025
- **Citation:** TCN-2025-NCLT-01167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/sindhu-cargo-services-private-limited-ad4d5195

## Summary

### Background

The Resolution Professional of Sindhu Cargo Services Private Limited filed an application (IA No. 864/2024) seeking reliefs against Yes Bank Limited for allegedly violating the moratorium imposed under Section 14 of the Insolvency and Bankruptcy Code, 2016.

## Facts

The Company Petition bearing C.P (IB) No.71/BB/2023 was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Union Bank of India to initiate Corporate Insolvency Resolution Process (‘CIRP') against Corporate Debtor was admitted on 28.05.2024.

Shirley Mathew was appointed as Interim Resolution Professional (“IRP”) of the Corporate Debtor.

The Corporate Debtor maintained a current account and three fixed deposits with Yes Bank Limited.

The balance in the Corporate Debtor's current account as on 28.05.2024 was an overdraft of ₹4,58,76,881.86.

The Respondent Bank appropriated a total sum of ₹5,00,00,000/- from the fixed deposits of the Corporate Debtor on 12.07.2024 and 03.09.2024.

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## Issues and analysis

### Issue 1: Whether the appropriation of funds from the Corporate Debtor's fixed deposits and debiting interest …

**Ratio:** The NCLT relied on the judgment in Bharti Airtel Ltd. vs Vijayakumar V Iyer and Ors,

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**Reasoning:** The NCLT reasoned that the adjustments made by the Respondent Bank pertained to a

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**Interpretation:** The NCLT interpreted Section 14 of the IBC to allow for contractual set-offs

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**Application:** The NCLT applied the principle of transactional set-off to the facts of the

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## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Appellants:** Shirley M…
- **Respondents:** Sindhu Cargo…; Yes Bank L…
- **Other parties:** Union Bank of…

## Timeline

- **2023-05-28 — CIRP Init…**: Corporate Insolvency Resolution Process initiated against Sindhu Cargo Services Private…
- **2024-05-28 — Overdraft B…**: The balance in the Corporate Debtor's current…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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