# In the matter of Independent TV Ltd. IA 1299-MB-IV-2020 In CP (IB)-3176-MB-IV-2019

> NCLT judgment dated 2021-03-15. Citation: TCN-2021-NCLT-02695. The case involves an Interlocutory Application (IA 1299/MB-IV/2020) filed under Section 19(2) &…

- **Court:** NCLT
- **Order date:** 15 Mar 2021
- **Citation:** TCN-2021-NCLT-02695
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/independent-tv-ltd-ia-1299-mb-iv-2020-in-cp-ib-3176-mb-iv-2019-1b5d06f6

## Summary

### Background

The case involves an Interlocutory Application (IA 1299/MB-IV/2020) filed under Section 19(2) & (3) and 60(5) of the Insolvency and Bankruptcy Code, 2016, in connection with Corporate Insolvency Resolution Process (CIRP) of Independent TV Limited (CP (IB)/3176/MB-IV/2019). The Resolution Professional (RP) sought directions from the NCLT to discharge his duties in the CIRP. The RP alleged that the Suspended Management of the Corporate Debtor failed to cooperate, handover assets and books of accounts, and misappropriated funds. Various respondents, including suspended directors and the bank, submitted their replies, denying the allegations and shifting blame.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Independent TV Limited on 2020-02-26. Anup Kumar was appointed as the Resolution Professional (RP). The RP alleged that the suspended management, including Vivek Singh, Suman Chakraborty, and Vivek Prakash, failed to cooperate with the CIRP. Specifically, the RP claimed that the suspended management withdrew Rs. 44.90 Lakh from the Corporate Debtor's bank account (held with National Urban Co-operative Bank Ltd.) without the RP's knowledge, even after the bank was informed of the CIRP and instructed to freeze the accounts. The RP also alleged that the suspended management failed to handover fixed assets and books of accounts. The suspended management denied these allegations, claiming they were not

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## Issues and analysis

### Issue 1: Whether the National Urban Co-operative Bank Ltd. was negligent in allowing unauthorized …

**Ratio:** A bank has a duty to exercise reasonable care and diligence in handling its customers'

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**Reasoning:** The NCLT found that the bank was informed of the CIRP and instructed to freeze the

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**Interpretation:** The principle of banking prudence requires banks to act with caution and

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**Application:** The NCLT applied this principle to the facts, finding that the bank's failure

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## Parties

- **Judges:** RAJESH S…; SUCHITRAKAN…
- **Appellants:** Anup K…
- **Respondents:** M/s Independent…; Vivek S…

## Timeline

- **2019-08-01 — Respondent No.2…**: Respondent No.2 was brought in the Company of the Corporate Debtor as a director in…
- **2020-02-26 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Independent TV…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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