This case involves an application filed by the Resolution Professional of Ferro Alloys Corporation Limited under Section 14, Section 17, and Section 60(5) of the Insolvency and Bankruptcy Code, 2016, against Central Bank of India, Syndicate Bank, Bank of India, and State Bank of India. The applicant sought directions against the respondents' unilateral action of appropriating the receivables of the Corporate Debtor deposited in the cash credit and working capital accounts. The NCLT Kolkata Bench had previously admitted the case under Section 7 of the IBC, which was upheld by NCLAT and later by the Supreme Court. Various extensions for the Corporate Insolvency Resolution Process were granted, and a resolution plan was approved on January 30, 2020.
Ferro Alloys Corporation Limited faced Corporate Insolvency Resolution Process (CIRP). Rural Electrification Corporation was the Financial Creditor. The Resolution Professional filed an application against Central Bank of India, Syndicate Bank, Bank of India, and State Bank of India, alleging that these banks unilaterally appropriated receivables of Ferro Alloys Corporation Limited during the moratorium period. The NCLT Kolkata Bench had admitted the case under Section 7 of the Insolvency and Bankruptcy Code, which was upheld by NCLAT and the Supreme Court. The banks argued that they had not violated Section 14 of the IBC, as some payments were made by the Resolution Professional. The Adjudicating Authority directed a meeting to resolve the issue, but the banks did not
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Hon'ble NCLT, Kolkata Bench passed an Order of…
The Hon'ble NCLAT in Company Appeal (AT) No. 92…
This case involves an application filed by the Resolution Professional of Ferro Alloys Corporation Limited under Section 14, Section 17, and Section 60(5) of the Insolvency and Bankruptcy Code, 2016, against Central Bank of India, Syndicate Bank, Bank of India, and State Bank of India. The applicant sought directions against the respondents' unilateral action of appropriating the receivables of the Corporate Debtor deposited in the cash credit and working capital accounts. The NCLT Kolkata Bench had previously admitted the case under Section 7 of the IBC, which was upheld by NCLAT and later by the Supreme Court. Various extensions for the Corporate Insolvency Resolution Process were granted, and a resolution plan was approved on January 30, 2020.
Ferro Alloys Corporation Limited faced Corporate Insolvency Resolution Process (CIRP). Rural Electrification Corporation was the Financial Creditor. The Resolution Professional filed an application against Central Bank of India, Syndicate Bank, Bank of India, and State Bank of India, alleging that these banks unilaterally appropriated receivables of Ferro Alloys Corporation Limited during the moratorium period. The NCLT Kolkata Bench had admitted the case under Section 7 of the Insolvency and Bankruptcy Code, which was upheld by NCLAT and the Supreme Court. The banks argued that they had not violated Section 14 of the IBC, as some payments were made by the Resolution Professional. The Adjudicating Authority directed a meeting to resolve the issue, but the banks did not
…Hon'ble NCLT, Kolkata Bench passed an Order of…
The Hon'ble NCLAT in Company Appeal (AT) No. 92…