# In the matter of Noslar International Ltd. (IB)-1031(ND)2018

> NCLT judgment dated 2019-05-31. Citation: TCN-2019-NCLT-03119. CA 622/2019 was filed by the Resolution Professional (RP) seeking directions to Axis Bank to…

- **Court:** NCLT
- **Order date:** 31 May 2019
- **Citation:** TCN-2019-NCLT-03119
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/noslar-international-ltd-ib-1031nd2018-5eca9d5f

## Summary

### Background

CA 622/2019 was filed by the Resolution Professional (RP) seeking directions to Axis Bank to release money held as security to meet Corporate Insolvency Resolution Process (CIR) costs.

## Facts

The Resolution Professional (RP) filed CA 622/2019 seeking directions for Axis Bank to release money held as security. The purpose of this release was to cover the Corporate Insolvency Resolution Process (CIR) costs. The court considered the request, taking into account the need to preserve the company's assets and the stage of the insolvency proceedings. The court ultimately dismissed the RP's petition, stating that the request should not be granted at this stage. The court also emphasized that the company's assets should not be dissipated and should be considered during liquidation, and that the CIR costs should be addressed by the Committee of Creditors (COC).

## Issues and analysis

### Issue 1: Whether the RP's request for directions to Axis Bank to release funds held as security to meet CIR …

**Ratio:** The court has the discretion to decide whether to grant the RP's request, considering the

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**Reasoning:** The court reasoned that at this stage, the RP's prayer should not be allowed. The court

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**Interpretation:** This issue involves the interpretation of the Insolvency and Bankruptcy Code

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**Application:** The court applied the ratio to the specific facts of the case, considering the

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Appellants:** M/s. Sonu Trading…
- **Respondents:** M/s. Noslar…

## Timeline

- **2019-05-31 — Hearing…**: Hearing before the New Delhi Bench of…
- **2019-01-01 — Filing of CA…**: CA 622/2019 filed by the RP seeking directions to Axis Bank to release money held as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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