The case involves an application filed by the Resolution Professional (RP) of AMW Motors Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the release of bank guarantees and fixed deposits. The corporate debtor, AMW Motors Limited, had provided fixed deposits as margin money for bank guarantees issued by ICICI Bank (Respondent No. 1) in favor of the Assistant Commissioner of Customs (Respondent No. 2). The bank guarantees were issued to secure material clearance from a bonded warehouse and delivery of cargo. The RP argues that the bank guarantees have expired, no claims were invoked, and the margin money should be released to the corporate debtor to alleviate its liquidity crunch.
AMW Motors Limited is undergoing Corporate Insolvency Resolution Process (CIRP). Mr. Avil Menezes is the Resolution Professional (RP) for AMW Motors Limited. ICICI Bank (Respondent No. 1) issued bank guarantees in favor of the Assistant Commissioner of Customs (Respondent No. 2) on behalf of AMW Motors Limited. AMW Motors Limited provided fixed deposits to ICICI Bank as margin money for these bank guarantees. The bank guarantees were intended to secure material clearance from a bonded warehouse and delivery of cargo. The bank guarantees expired between September 2017 and January 2018. No claims were ever made by the Assistant Commissioner of Customs under these bank guarantees. The RP requested ICICI Bank to release the fixed deposits (margin money), but ICICI Bank
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Application under Section 7 of the IB Code was…
Appointment of the applicant as Resolution…
The case involves an application filed by the Resolution Professional (RP) of AMW Motors Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the release of bank guarantees and fixed deposits. The corporate debtor, AMW Motors Limited, had provided fixed deposits as margin money for bank guarantees issued by ICICI Bank (Respondent No. 1) in favor of the Assistant Commissioner of Customs (Respondent No. 2). The bank guarantees were issued to secure material clearance from a bonded warehouse and delivery of cargo. The RP argues that the bank guarantees have expired, no claims were invoked, and the margin money should be released to the corporate debtor to alleviate its liquidity crunch.
AMW Motors Limited is undergoing Corporate Insolvency Resolution Process (CIRP). Mr. Avil Menezes is the Resolution Professional (RP) for AMW Motors Limited. ICICI Bank (Respondent No. 1) issued bank guarantees in favor of the Assistant Commissioner of Customs (Respondent No. 2) on behalf of AMW Motors Limited. AMW Motors Limited provided fixed deposits to ICICI Bank as margin money for these bank guarantees. The bank guarantees were intended to secure material clearance from a bonded warehouse and delivery of cargo. The bank guarantees expired between September 2017 and January 2018. No claims were ever made by the Assistant Commissioner of Customs under these bank guarantees. The RP requested ICICI Bank to release the fixed deposits (margin money), but ICICI Bank
…Application under Section 7 of the IB Code was…
Appointment of the applicant as Resolution…