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

> NCLT judgment dated 2019-05-31. Citation: TCN-2019-NCLT-03112. CA 622/2019 was filed by the Resolution Professional (RP) seeking directions for Axis Bank to…

- **Court:** NCLT
- **Order date:** 31 May 2019
- **Citation:** TCN-2019-NCLT-03112
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/noslar-international-ltd-ib-1031nd2018-93af5918

## Summary

### Background

CA 622/2019 was filed by the Resolution Professional (RP) seeking directions for Axis Bank to release money held as security to cover Corporate Insolvency Resolution Process (CIR) costs. The order addresses the treatment of company assets and CIR costs during liquidation.

## Facts

CA 622/2019 was filed by the Resolution Professional (RP) seeking directions from the court to compel Axis Bank to release funds held as security. The RP intended to use these funds to cover the Corporate Insolvency Resolution Process (CIR) costs. The court considered the request in the context of the company's assets, the liquidation stage, and the role of the Committee of Creditors (COC) in covering CIR costs. The court ultimately dismissed the petition, denying the RP's request.

## Issues and analysis

### Issue 1: Whether the Axis Bank should be directed to release the money kept as security to meet the CIR …

**Ratio:** The court has the discretion to determine whether to direct the release of funds held as

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**Reasoning:** The court did not consider that the prayer of

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**Interpretation:** This issue involves the interpretation of the powers of the court in directing

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**Application:** The court applied its discretion to deny the RP's request, indicating that 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…

## 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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