# In the matter of Jassum Propocon Projects Pvt. Ltd.

> NCLT judgment dated 2023-07-13. Citation: TCN-2023-NCLT-02525. The case involves an application filed under Section 14 r/w Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 13 Jul 2023
- **Citation:** TCN-2023-NCLT-02525
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jassum-propocon-projects-pvt-ltd-1572e39e

## Summary

### Background

The case involves an application filed under Section 14 r/w Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking reliefs related to the Corporate Insolvency Resolution Process (CIRP) of Jassum Propcon Projects Private Limited. Jagat Pal Paliwal & Anr., as Financial Creditors, initiated CIRP under Section 7 of the Insolvency & Bankruptcy Code. The Tribunal initiated CIRP on 31.10.2019 and appointed Sapan Mohan Garg as the Interim Resolution Professional (IRP). The IRP requested Corporation Bank and RBL Bank to provide copies of CBI notices that directed the freezing of the Corporate Debtor's bank accounts. The Ministry of Corporate Affairs also directed the banks to freeze accounts of companies struck off under Section 248 of the Companies Act,

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## Facts

Jagat Pal Paliwal & Anr., as Financial Creditors, initiated Corporate Insolvency Resolution Process (CIRP) against Jassum Propcon Projects Private Limited (Corporate Debtor) under Section 7 of the Insolvency & Bankruptcy Code (IBC). The National Company Law Tribunal (NCLT) initiated CIRP on 31.10.2019 and appointed Sapan Mohan Garg as the Interim Resolution Professional (IRP). The IRP discovered that the Corporate Debtor's bank accounts were frozen based on instructions from the Central Bureau of Investigation (CBI) and the Ministry of Corporate Affairs (MCA). Corporation Bank and RBL Bank, the banks holding the accounts, were intimated of the CIRP commencement. The IRP requested copies of the CBI notices directing the freeze but did not receive them. The MCA

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## Issues and analysis

### Issue 1: Whether the attachment of bank accounts of the Corporate Debtor during the moratorium period is …

**Ratio:** Section 14 of the IBC, 2016 imposes a moratorium that prohibits the institution of suits

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**Reasoning:** The Tribunal reasoned that the attachment of bank accounts during the moratorium period

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**Interpretation:** Section 14 is interpreted to provide a protective shield to the Corporate

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**Application:** In this case, the attachment of the Corporate Debtor's bank accounts, based on

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** Jagat Pal P…
- **Respondents:** Jassum Propcon…; Central Bureau Of…

## Timeline

- **2018-01-01 — Company Petiti…**: Company Petition No. (IB) –…
- **2019-10-31 — CIRP Init…**: Tribunal initiated CIRP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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