# In the matter of Bombay Rayon Fashions Limited IA.2152-2022 in CP. No. 1443-MB-IV-2020

> NCLT judgment dated 2023-03-17. Citation: TCN-2023-NCLT-04209. This is an Application No. 2152/2022 filed by the Interim Resolution Professional (IRP),…

- **Court:** NCLT
- **Order date:** 17 Mar 2023
- **Citation:** TCN-2023-NCLT-04209
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bombay-rayon-fashions-limited-ia2152-2022-in-cp-no-1443-mb-iv-2020-588eb376

## Summary

### Background

This is an Application No. 2152/2022 filed by the Interim Resolution Professional (IRP), initially Ms. Shantanu T Ray and later Mr. Satish Kumar Gupta, of Bombay Rayon Fashions Limited (“Corporate Debtor”) under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 (“Code”). The application seeks directions for the detachment of bank accounts of the Corporate Debtor. The IRP included additional bank accounts in the application.

## Facts

On 04/08/2022, an application (IA.2152/2022) was filed by the Interim Resolution Professional (IRP) of Bombay Rayon Fashions Limited, seeking the detachment of the corporate debtor's bank accounts. The EPFO had issued attachment orders on 06.06.2022, a day before the CIRP initiation date of 07.06.2022. The applicant argued that the attachment order preceded the moratorium under Section 14 of the IBC. The application included details of numerous bank accounts held by the Corporate Debtor across various banks and locations. The EPFO did not file any reply to the application. The applicant relied on decisions of the NCLAT and the Supreme Court, which held that PF and ESI funds are not part of the Corporate Debtor's estate. The court noted the absence of specific details

…

## Issues and analysis

### Issue 1: Whether the attachment orders issued by the EPFO on the Corporate Debtor's bank accounts are valid …

**Ratio:** The legal principle is that attachment orders issued prior to the commencement of the

…

**Reasoning:** The court reasoned that while the attachment order was issued before the CIRP initiation,

…

**Interpretation:** The interpretation of Section 14 of the IBC, in conjunction with the legal

…

**Application:** In this case, the court applied the ratio by acknowledging the validity of the

…

## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Satish Kuma…
- **Respondents:** Bombay Rayon…; Employees…

## Timeline

- **2022-06-06 — Attachment Orde…**: EPFO issued attachment orders on the…
- **2022-06-07 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Bombay Rayon Fashions…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bombay-rayon-fashions-limited-ia2152-2022-in-cp-no-1443-mb-iv-2020-588eb376