# In the matter of Reliance Communications Infrastructure Limited

> NCLT judgment dated 2024-01-02. Citation: TCN-2024-NCLT-03343. The Application IA 1943/2020 was filed by the Resolution Professional of Reliance…

- **Court:** NCLT
- **Order date:** 2 Jan 2024
- **Citation:** TCN-2024-NCLT-03343
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/reliance-communications-infrastructure-limited-5884e940

## Summary

### Background

The Application IA 1943/2020 was filed by the Resolution Professional of Reliance Communications Infrastructure Limited, the Corporate Debtor, seeking a direction to the Industrial and Commercial Bank of China Limited, the Respondent, to lift/release/remove the lien marked on the fixed deposit of the Corporate Debtor maintained with the Respondent bank. The Corporate Debtor is undergoing Corporate Insolvency Resolution Process (CIRP), and the Resolution Plan has been approved by the Tribunal on 19.12.2023. Prior to the CIRP, the Corporate Debtor had opened a term/fixed deposit with the Respondent. The Corporate Debtor had issued a letter authorizing the Respondent to mark a lien on the FDR in favor of the Respondent, including renewal of the FDR as a security in

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## Facts

Reliance Communications Infrastructure Limited ('Corporate Debtor') is undergoing CIRP. Anish Niranjan Nanavaty is the Resolution Professional ('Applicant'). Industrial and Commercial Bank of China Limited ('Respondent') had marked a lien on the Corporate Debtor's fixed deposit (FDR) of Rs.27,60,00,000. The Corporate Debtor had issued a letter dated 27 March 2017 authorizing the Respondent to mark a lien on the FDR. The Applicant requested the Respondent to release the funds, stating that the Corporate Debtor had not availed of any credit facilities from the Respondent. The Respondent refused to remove the lien, claiming it was based on facilities extended to Reliance Infratel Limited (RITL). The Applicant argued that this was an incorrect interpretation of the lien

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## Issues and analysis

### Issue 1: Whether the Respondent (Industrial and Commercial Bank of China Limited) was justified in …

**Ratio:** The letter of lien must be interpreted strictly within its terms, and the words 'us' or

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**Reasoning:** The Tribunal reasoned that the letter of lien authorized the Respondent to hold the FDR

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**Interpretation:** The interpretation of the letter of lien is crucial. The Tribunal emphasized

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**Application:** The Tribunal applied the ratio to the facts by finding that the letter of lien

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Anish Niranjan…
- **Respondents:** Reliance Communica…; INDUSTRIAL AND…

## Timeline

- **2017-03-27 — Lien Letter…**: The Corporate Debtor issued a letter authorizing…
- **2020-07-10 — Applicant's…**: The Applicant stated to the Respondent that the Corporate Debtor had not availed of any…

## 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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