The bank account of the corporate debtor was freezed by way of an order of EOW which was prior to the commencement of CIRP of the CD and the RP sought approval from the Adjudicating Authority to defreeze the bank account.
Re: Mr. Anil Tayal, RP of AVJ Developers Limited vs. Economic Offences Wing and Anr., NCLT, Principal Bench, New Delhi.
Proceedings under Section 14, 17(1)(d), 18, 20 of the Insolvency and Bankruptcy Code, 2016 (IBC) and Rule 11 of NCLT Rules, 2016 – Attachment order by Economic Offences Wing – Freezing of the bank account of the Corporate debtor – Application by a financial creditor u/s. 7 of IBC – Initiation of Corporate Insolvency Resolution Process (CIRP) – Moratorium – Appointment of the Interim Resolution Professional (IRP) – IRP thus, filed instant application assailing the freeze of bank account of the corporate debtor to perform CIRP activities as contemplated in section 17(1)(d) and continuation of such proceeding when moratorium promulgated under section 14 is in progress, was wholly illegal – The Adjudicating Authority directed the bank to defreeze the bank account of the Corporate debtor and allowed RP to operate the bank account of the Corporate debtor via. the powers conferred by the Adjudicating Authority under Rule 11 of NCLT Rules, 2016.
Hearing has been conducted through video conferencing.
On the application filed by the Resolution Professional assailing freeze of bank account of the corporate debtor lying with Kotak Mahindra Bank (R2) based on the attachment order passed by the Economic Offences Wing (R1) on 05.07.2018, for R1 has conceded for defreezing the bank account, the same is hereby defreezed with the direction to Kotak Mahindra Bank (R2) to allow the Resolution Professional to operate the bank account of the Corporate Debtor.
Accordingly, the unnumbered application is hereby allowed.