The case involves an application filed under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, concerning a dispute over the wrongful deduction of funds by Indian Overseas Bank (IOB) from the account of Diamond Power & Infrastructure Ltd. (DPIL) after the commencement of the Corporate Insolvency Resolution Process (CIRP). The applicant, Consortium of GSEC Ltd. and Mr. Rakesh Shah, sought the reversal of Rs. 1,58,59,294/- deducted by IOB. The CIRP against DPIL was initiated on 24.08.2018, and a resolution plan submitted by GSEC Limited in consortium with Mr. Rakesh Shah was approved on 20.06.2022. The dispute arose because IOB deducted the amount on 27.09.2018, after the CIRP commencement, as an adjustment to its claim against DPIL. DPIL argues this
…Diamond Power & Infrastructure Ltd. (DPIL) underwent Corporate Insolvency Resolution Process (CIRP) initiated on 24.08.2018. Consortium of GSEC Ltd. and Mr. Rakesh Shah submitted a resolution plan, approved on 20.06.2022. Indian Overseas Bank (IOB) deducted Rs. 1,58,59,294/- from DPIL's account on 27.09.2018, after CIRP commencement. DPIL requested bank statements and details of fixed deposits from IOB, which IOB provided on 24.01.2023. DPIL sent emails and a legal notice to IOB, seeking reversal of the deduction, but received no satisfactory response. IOB claimed the deduction was for margin money related to bank guarantees invoked before CIRP. IOB argued the margin money was held in trust for bank guarantee beneficiaries and not part of DPIL's assets. The
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Corporate Insolvency Resolution Process…
Indian Overseas Bank…
The case involves an application filed under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, concerning a dispute over the wrongful deduction of funds by Indian Overseas Bank (IOB) from the account of Diamond Power & Infrastructure Ltd. (DPIL) after the commencement of the Corporate Insolvency Resolution Process (CIRP). The applicant, Consortium of GSEC Ltd. and Mr. Rakesh Shah, sought the reversal of Rs. 1,58,59,294/- deducted by IOB. The CIRP against DPIL was initiated on 24.08.2018, and a resolution plan submitted by GSEC Limited in consortium with Mr. Rakesh Shah was approved on 20.06.2022. The dispute arose because IOB deducted the amount on 27.09.2018, after the CIRP commencement, as an adjustment to its claim against DPIL. DPIL argues this
…Diamond Power & Infrastructure Ltd. (DPIL) underwent Corporate Insolvency Resolution Process (CIRP) initiated on 24.08.2018. Consortium of GSEC Ltd. and Mr. Rakesh Shah submitted a resolution plan, approved on 20.06.2022. Indian Overseas Bank (IOB) deducted Rs. 1,58,59,294/- from DPIL's account on 27.09.2018, after CIRP commencement. DPIL requested bank statements and details of fixed deposits from IOB, which IOB provided on 24.01.2023. DPIL sent emails and a legal notice to IOB, seeking reversal of the deduction, but received no satisfactory response. IOB claimed the deduction was for margin money related to bank guarantees invoked before CIRP. IOB argued the margin money was held in trust for bank guarantee beneficiaries and not part of DPIL's assets. The
…Corporate Insolvency Resolution Process…
Indian Overseas Bank…