The case involves an application regarding the Corporate Insolvency Resolution Process (CIRP) of Manthan Broadband Service Private Limited. The CIRP commenced on September 18, 2019. The Resolution Professional (RP) filed an application seeking directions to Canara Bank to reverse debit entries made after the moratorium was imposed, totaling Rs. 8.75 Lakhs, and credit the same to the Corporate Debtor's bank accounts. The RP alleged that the bank violated Section 14 of the Insolvency and Bankruptcy Code (IBC) by debiting the accounts after the moratorium was in effect.
The Corporate Debtor, Manthan Broadband Service Private Limited, underwent CIRP commencing on September 18, 2019. Kuldeep Verma was appointed as the Resolution Professional (RP). Canara Bank, the respondent, allegedly debited Rs. 8.75 Lakhs from the Corporate Debtor's accounts after the moratorium was imposed. The RP contended that these debits violated Section 14 of the IBC, which prohibits any recovery action against the Corporate Debtor during the moratorium. The bank argued that it was entitled to adjust interest from security interests created by third parties and that some debits were for interest accrued before the moratorium. The bank had extended credit facility to the Corporate Debtor in the nature of Overdraft loan to the limit of Rs.86.68 lakhs against two
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CIRP of Manthan…
Mr. Shashi Agarwal resigned and withdrew from…
The case involves an application regarding the Corporate Insolvency Resolution Process (CIRP) of Manthan Broadband Service Private Limited. The CIRP commenced on September 18, 2019. The Resolution Professional (RP) filed an application seeking directions to Canara Bank to reverse debit entries made after the moratorium was imposed, totaling Rs. 8.75 Lakhs, and credit the same to the Corporate Debtor's bank accounts. The RP alleged that the bank violated Section 14 of the Insolvency and Bankruptcy Code (IBC) by debiting the accounts after the moratorium was in effect.
The Corporate Debtor, Manthan Broadband Service Private Limited, underwent CIRP commencing on September 18, 2019. Kuldeep Verma was appointed as the Resolution Professional (RP). Canara Bank, the respondent, allegedly debited Rs. 8.75 Lakhs from the Corporate Debtor's accounts after the moratorium was imposed. The RP contended that these debits violated Section 14 of the IBC, which prohibits any recovery action against the Corporate Debtor during the moratorium. The bank argued that it was entitled to adjust interest from security interests created by third parties and that some debits were for interest accrued before the moratorium. The bank had extended credit facility to the Corporate Debtor in the nature of Overdraft loan to the limit of Rs.86.68 lakhs against two
…CIRP of Manthan…
Mr. Shashi Agarwal resigned and withdrew from…