# In the matter of ETCO Industries Private Limited IA. No. 1100-2022 In CP(IB)No. 1111-MB-2019

> NCLT judgment dated 2022-08-12. Citation: TCN-2022-NCLT-01380. The case involves an application (IA No. 1100/2022) filed by Ramesh D. Shah, the Successful…

- **Court:** NCLT
- **Order date:** 12 Aug 2022
- **Citation:** TCN-2022-NCLT-01380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/etco-industries-private-limited-ia-no-1100-2022-in-cpibno-1111-mb-2019-31b46f03

## Summary

### Background

The case involves an application (IA No. 1100/2022) filed by Ramesh D. Shah, the Successful Resolution Applicant (SRA) of Etco Industries Private Limited, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016. The application is against Vijay Pitamber Lulla, Chairman of Steering Committee; Union Bank of India, and Omkara Assets Reconstruction Private Limited. The SRA sought directions for the smooth implementation of the Resolution Plan, specifically regarding the operation of the Corporate Debtor's current account and the classification of its assets.

## Facts

Ramesh D. Shah, the Successful Resolution Applicant (SRA) of Etco Industries Private Limited, filed an application seeking certain directions for the smooth implementation of the Resolution Plan. The application was filed against Vijay Pitamber Lulla, Chairman of Steering Committee; Union Bank of India, and Omkara Assets Reconstruction Private Limited. The SRA requested the tribunal to direct Union Bank of India to allow normal operations in the Corporate Debtor's current account (No. 059311010000010), upgrade the asset classification of the company's accounts to 'Standard,' and release a fixed deposit amount of Rs. 47.65 Lakhs belonging to the Corporate Debtor. The SRA argued that despite the approval of the Resolution Plan, the bank was not allowing normal operations

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## Issues and analysis

### Issue 1: Whether the Respondent No. 2 (Union Bank of India) should be directed to allow normal operations in …

**Ratio:** The objective of the Insolvency and Bankruptcy Code is to provide a clean start to the

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**Reasoning:** The tribunal reasoned that hindering the operation of the Corporate Debtor's account

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**Interpretation:** The interpretation of the Code emphasizes the importance of facilitating the

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**Application:** The tribunal applied this principle to the facts of the case, directing the

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Ramesh D.…
- **Respondents:** ETCO Industries…; Vijay Pitamber…

## Timeline

- **2019-01-01 — CP(IB)No. 1111…**: The initial Corporate Insolvency Resolution…
- **2022-03-14 — Applicant's Email to…**: The Applicant sent an email to Respondent No. 2 requesting for allowing operations in…

## 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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