# In the matter of LTS Plastics (India) Private Limited

> NCLT judgment dated 2023-07-17. Citation: TCN-2023-NCLT-02500. The case pertains to an application under Section 54(1) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 17 Jul 2023
- **Citation:** TCN-2023-NCLT-02500
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lts-plastics-india-private-limited-16cfdd7f

## Summary

### Background

The case pertains to an application under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The application, IA(IBC)/906(KB)2023, was filed in CP(IB)/1369(KB)2018. The court observed that certain accounts maintained by the Corporate Debtor with DBS Bank, Kolkata, remained open and the funds therein needed to be transferred to the liquidation account with Punjab National Bank (PNB).

## Facts

The Corporate Debtor, LTS Plastics (India) Private Limited, is undergoing liquidation. An application, IA(IBC)/906(KB)2023, was filed under Section 54(1) of the Insolvency and Bankruptcy Code, 2016. During the review of the application, the court discovered that certain accounts maintained by the Corporate Debtor with DBS Bank, Kolkata, were still open. The funds in these accounts were supposed to be transferred to the liquidation account with Punjab National Bank (PNB). The liquidation account number is 0389202100000018. The court directed the Liquidator to file an affidavit with supporting documents to confirm the closure of the DBS Bank accounts and the transfer of funds to the PNB liquidation account. The Liquidator must also provide bank statements and a

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## Issues and analysis

### Issue 1: Whether the accounts maintained by the Corporate Debtor with DBS Bank, Kolkata, have been properly …

**Ratio:** The ratio is based on the provisions of the Insolvency and Bankruptcy Code, 2016, and the

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**Reasoning:** The court reasoned that the proper closure of the Corporate Debtor's bank accounts and

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**Interpretation:** The interpretation of the relevant provisions of the IBC and Liquidation

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**Application:** The court applied this ratio to the specific facts by directing the Liquidator

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Respondents:** LTS Plastics…; Rishav Ba…

## Timeline

- **2023-05-06 — IA(IBC)/906(KB)2023…**: IA(IBC)/906(KB)2023 was…
- **2023-07-17 — Clarification Order…**: The clarification order…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54(1) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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