# In the matter of Ariston Pharma Nova Tech Pvt. Ltd

> NCLT judgment dated 2024-02-01. Citation: TCN-2024-NCLT-02810. The case involves an application (IA (IBC)/990/2023) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 1 Feb 2024
- **Citation:** TCN-2024-NCLT-02810
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ariston-pharma-nova-tech-pvt-ltd-29d55702

## Summary

### Background

The case involves an application (IA (IBC)/990/2023) filed by the Resolution Professional (RP) of the Corporate Debtor (CD), M/s. Ariston Pharma Novatech Private Limited, in the Corporate Insolvency Resolution Process (CIRP) under CP (IB) No.416/09/HDB/2020. The RP sought directions to release the attachment/lien/prohibition order on the CD's bank account (CA/5262) maintained with Andhra Pradesh Mahesh Co-Op Urban Bank Limited, Kukatpally Branch, and to allow the RP to take control of the account. The RP also requested unfreezing of the account and restraint of the Statutory Authority from further attachment or lien, along with updating the Authorized Signatory to operate the account.

## Facts

The Corporate Debtor, M/s. Ariston Pharma Novatech Private Limited, is undergoing Corporate Insolvency Resolution Process (CIRP) initiated on 2023-01-18. Manjeet Bucha is the Resolution Professional (RP). The CD maintains a current account (CA/5262) with Andhra Pradesh Mahesh Co-Op Urban Bank Limited, Kukatpally Branch, holding a balance of Rs.26,18,114.70 as of 2022-11-28. Respondent No.2 (Office of Additional Superintendent of Police) directed Respondent No.1 to freeze the CD's account under Section 102 of the Criminal Procedure Code (CrPC), based on FIR Crime No. 1/21 under the NDPS Act against Mr. Vedprakash Vyas, a Suspended Board of Director of the CD, concerning MDMA drug. The RP informed Respondent No.2 about the CIRP initiation on 2023-05-18 and requested

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## Issues and analysis

### Issue 1: Whether the freezing of the Corporate Debtor's bank account, based on an FIR lodged against a …

**Ratio:** Section 14 of the IBC imposes a moratorium on the institution or continuation of suits or

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**Reasoning:** The court reasoned that the freezing of the Corporate Debtor's bank account, which

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**Interpretation:** Section 14 of the IBC is interpreted to have a broad scope, encompassing any

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**Application:** In this case, the freezing of the bank account directly impacted the Corporate

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Manjeet…
- **Respondents:** Ariston Pharma…; Andhra Pradesh…

## Timeline

- **2023-01-18 — Commencement…**: Corporate Insolvency Resolution Process (CIRP) commenced against Ariston Pharma Novatech…
- **2023-05-18 — RP informs Respondent…**: The Resolution Professional (RP) informed Respondent No. 2 about the initiation of CIRP…

## 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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