# In the matter of Uniword Sugars Pvt. Ltd. CA No. 277-2018 In CP No.(IB)120-ALD-2017

> NCLT judgment dated 2018-12-31. Citation: TCN-2018-NCLT-00006. The case involves an application (CA No.277/2018) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 31 Dec 2018
- **Citation:** TCN-2018-NCLT-00006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uniword-sugars-pvt-ltd-ca-no-277-2018-in-cp-noib120-ald-2017-6224be46

## Summary

### Background

The case involves an application (CA No.277/2018) filed by the Resolution Professional (RP) under Section 60(5)(b) of the Insolvency & Bankruptcy Code, 2016, seeking the recovery of Rs.32,40,000/- from IDBI Bank Limited, the respondent. The Corporate Debtor, Uniworld Sugars Private Limited, was undergoing Corporate Insolvency Resolution Process (CIRP). The RP contested the deduction of Rs.32,40,000/- by IDBI Bank towards lead bank charges from the Corporate Debtor's account, arguing that it was inappropriate post-CIRP initiation. The respondent bank claimed the deduction was for outstanding lead bank fees for the years 2015-16, 2016-17, and 2017-18, predating the CIRP commencement.

## Facts

Uniworld Sugars Private Limited (Corporate Debtor) was undergoing CIRP, initiated on 29.05.2018. Pramod Kumar Sharma was the Resolution Professional (RP). IDBI Bank Limited was a financial creditor and a member of the Committee of Creditors (COC). The Corporate Debtor maintained an account with IDBI Bank. On 25.04.2018, IDBI Bank debited Rs.32,40,000/- from the Corporate Debtor's Trust and Retention Account (TRA) No.0412102000009133 and transferred it to a suspense account. The RP contended this was done without informing the Corporate Debtor. The RP argued that the amount should be restored to the Corporate Debtor. IDBI Bank claimed the deduction was towards outstanding lead bank fees for FY 2015-16, 2016-17, and 2017-18. The Corporate Debtor had entered into an Asset

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## Issues and analysis

### Issue 1: Whether the respondent bank can make use of the amount in the suspense account for payment towards …

**Ratio:** After the commencement of CIRP, no Financial Creditor is entitled to recover any amount

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**Reasoning:** The court reasoned that the amount of Rs.32,40,000/- was transferred from the TRA of the

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**Interpretation:** The interpretation hinges on the timing of the debit. If the debit occurred

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**Application:** In this case, the amount was debited from the TRA of the Corporate Debtor on

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Saroj Ra…
- **Appellants:** Pramod Kumar…
- **Respondents:** Uniworld Sugars…; IDBI Bank L…
- **Advocates:** Sh. Sanya…; Sh. Mohd. Nazim…; +2 more

## Timeline

- **2012-01-01 — Credit Facility…**: Consortium of bankers sanctioned credit facility to the corporate debtor in the year…
- **2013-03-26 — Consortium Loan…**: Respondent acted as lead bank under the consortium agreement since the formation of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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