The case involves a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, filed by Corporation Bank (Financial Creditor) against Amtek Auto Limited (Corporate Debtor). The petition was admitted on 24.07.2017, and Mr. Dinkar Tiruvannadapuram Venkatsubramanian was appointed as Interim Resolution Professional (IRP) on 27.07.2017. A moratorium was declared under Section 14(1) of the Code. The IRP instructed Indian Overseas Bank (Hosur Branch), a financial creditor with 4.08% of the total financial debt, to freeze the corporate debtor's accounts. The bank, however, exercised its right of set-off, appropriating the funds towards the corporate debtor's dues. The IRP challenged this action, arguing it violated the moratorium.
Corporation Bank initiated Corporate Insolvency Resolution Process (CIRP) against Amtek Auto Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 24.07.2017, and a moratorium was declared. Mr. Dinkar Tiruvannadapuram Venkatsubramanian was appointed as the Interim Resolution Professional (IRP) on 27.07.2017. The IRP instructed Indian Overseas Bank (IOB), Hosur Branch, where Amtek Auto Limited held a current account, to freeze the account and transfer funds. IOB, however, exercised its right of set-off, appropriating ₹6.67 crores towards Amtek Auto's dues. IOB claimed that Amtek Auto had concealed the existence of this account and had falsely declared that it did not have any credit facilities with other banks. The IRP argued
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The Insolven…
Petition under Section 7 of the Insolvency &…
The case involves a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, filed by Corporation Bank (Financial Creditor) against Amtek Auto Limited (Corporate Debtor). The petition was admitted on 24.07.2017, and Mr. Dinkar Tiruvannadapuram Venkatsubramanian was appointed as Interim Resolution Professional (IRP) on 27.07.2017. A moratorium was declared under Section 14(1) of the Code. The IRP instructed Indian Overseas Bank (Hosur Branch), a financial creditor with 4.08% of the total financial debt, to freeze the corporate debtor's accounts. The bank, however, exercised its right of set-off, appropriating the funds towards the corporate debtor's dues. The IRP challenged this action, arguing it violated the moratorium.
Corporation Bank initiated Corporate Insolvency Resolution Process (CIRP) against Amtek Auto Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 24.07.2017, and a moratorium was declared. Mr. Dinkar Tiruvannadapuram Venkatsubramanian was appointed as the Interim Resolution Professional (IRP) on 27.07.2017. The IRP instructed Indian Overseas Bank (IOB), Hosur Branch, where Amtek Auto Limited held a current account, to freeze the account and transfer funds. IOB, however, exercised its right of set-off, appropriating ₹6.67 crores towards Amtek Auto's dues. IOB claimed that Amtek Auto had concealed the existence of this account and had falsely declared that it did not have any credit facilities with other banks. The IRP argued
…The Insolven…
Petition under Section 7 of the Insolvency &…