# In the matter of Kadevi Industries Limited

> NCLT judgment dated 2025-01-06. Citation: TCN-2025-NCLT-00678. The application was filed to direct the Respondent Bank to deposit funds towards Fixed Deposits…

- **Court:** NCLT
- **Order date:** 6 Jan 2025
- **Citation:** TCN-2025-NCLT-00678
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kadevi-industries-limited-39c9c778

## Summary

### Background

The application was filed to direct the Respondent Bank to deposit funds towards Fixed Deposits of the Corporate Debtor (CD) with accrued interest into the Liquidation Account. The main CP was admitted into CIRP on 23.02.2018, and the Applicant was appointed as Liquidator on 31.03.2022. The Applicant discovered that the CD had Fixed Deposits in the Respondent Bank worth Rs 69,305, Rs 1,97,53,689, and Rs 41,81,056. The Respondent Bank did not transfer the deposits, claiming they were attached by the Maharashtra Sales Tax Department, Income Tax Department, and Customs & Central Excise Departments.

## Facts

The Indian Bank, acting as the financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Kadevi Industries Limited. The CIRP was admitted on 23.02.2018. Subsequently, a liquidator was appointed on 31.03.2022. The liquidator discovered that Kadevi Industries Limited held fixed deposits in Axis Bank amounting to Rs 69,305, Rs 1,97,53,689, and Rs 41,81,056. The liquidator requested Axis Bank to transfer these funds to the liquidation account. Axis Bank refused, stating that the fixed deposits were attached by the Maharashtra Sales Tax Department, Income Tax Department, and Customs & Central Excise Departments. Axis Bank had received a garnishee order under Section 226(3) of the Income Tax Act, 1961, on 16.06.2016, for Rs 1,97,53,689. Notices

…

## Issues and analysis

### Issue 1: Whether the funds held in fixed deposits by the Corporate Debtor with the Respondent Bank, which …

**Ratio:** Amounts attached by tax authorities prior to the commencement of CIRP do not form part of

…

**Reasoning:** The NCLT reasoned that since the amounts were attached by the tax authorities before the

…

**Interpretation:** The legal principle is that assets of a corporate debtor that are subject to

…

**Application:** In this case, the fixed deposits of Kadevi Industries Limited were attached by

…

## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Indian…
- **Respondents:** Kadevi Industries…

## Timeline

- **2018-02-23 — CIRP Admi…**: The main Company Petition (CP) was admitted into Corporate Insolvency Resolution Process…
- **2022-03-31 — Liquidator App…**: The Applicant was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

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/kadevi-industries-limited-39c9c778