The Resolution Professional (RP) for Indian Steel Corporation Limited filed an application seeking direction to Union Bank of India (the Respondent), a financial creditor, to refund Rs. 2,38,32,505/-. This amount was appropriated and adjusted by the Respondent against outstanding liabilities after the initiation of the Corporate Insolvency Resolution Process (CIRP) and the declaration of a moratorium. The Corporate Debtor was admitted into CIRP on 06.10.2021, and the Applicant was appointed as the Interim Resolution Professional and subsequently confirmed as the RP.
Indian Steel Corporation Limited was admitted into CIRP on 06.10.2021. Mr. Ajay Joshi was appointed as the Resolution Professional (RP). Union Bank of India, a financial creditor, had granted credit facilities to the Corporate Debtor via a loan agreement dated 22.06.2013. After the CIRP initiation, the Respondent (Union Bank of India) adjusted Rs. 2,38,32,505/- from the Corporate Debtor's current account against liabilities under Letters of Credit. The RP argued that this adjustment violated the moratorium declared under Section 14 of the Insolvency and Bankruptcy Code. The Respondent claimed that the transaction occurred before the public announcement of CIRP on 08.10.2021 and that the deducted amount was margin money. The RP stated that the intimation of CIRP was
…Sign in to view the parties.
Union Bank of India granted credit facilities…
Indian Steel Corporation Limited was admitted…
The Resolution Professional (RP) for Indian Steel Corporation Limited filed an application seeking direction to Union Bank of India (the Respondent), a financial creditor, to refund Rs. 2,38,32,505/-. This amount was appropriated and adjusted by the Respondent against outstanding liabilities after the initiation of the Corporate Insolvency Resolution Process (CIRP) and the declaration of a moratorium. The Corporate Debtor was admitted into CIRP on 06.10.2021, and the Applicant was appointed as the Interim Resolution Professional and subsequently confirmed as the RP.
Indian Steel Corporation Limited was admitted into CIRP on 06.10.2021. Mr. Ajay Joshi was appointed as the Resolution Professional (RP). Union Bank of India, a financial creditor, had granted credit facilities to the Corporate Debtor via a loan agreement dated 22.06.2013. After the CIRP initiation, the Respondent (Union Bank of India) adjusted Rs. 2,38,32,505/- from the Corporate Debtor's current account against liabilities under Letters of Credit. The RP argued that this adjustment violated the moratorium declared under Section 14 of the Insolvency and Bankruptcy Code. The Respondent claimed that the transaction occurred before the public announcement of CIRP on 08.10.2021 and that the deducted amount was margin money. The RP stated that the intimation of CIRP was
…Union Bank of India granted credit facilities…
Indian Steel Corporation Limited was admitted…