Advocate Sushila
NCLAT REITERATES THAT BANKS CANNOT DEBIT AMOUNTS FROM THE CORPORATE DEBTOR COMPANY DURING MORATORIUM
Advocate Sushila Ram 21 Jun 2021

NCLAT REITERATES THAT BANKS CANNOT DEBIT AMOUNTS FROM THE CORPORATE DEBTOR COMPANY DURING MORATORIUM


The Hon’ble National Company Law Appellate Tribunal (“#NCLAT”) in the case of Bank of India v. Bhuban Madan, [2021 SCC OnLine NCLAT 189], vide its Judgment dated 28-05-2021, held that the #Banks cannot #freeze #accounts and prohibit the ‘#CorporateDebtor’ from withdrawing the amounts as available on the date of the #moratorium for its day-to-day functioning.


Recently, in this particular case National Company Law Tribunal, Cuttack Bench, Cuttack (“NCLT”) has admitted an Application under Section 7 of the Insolvency and Bankruptcy Code, 2016, (‘IBC’) filed by the Financial Creditors against the Corporate Debtor, vide its Order dated 06-07-2017.

The NCLT Order dated 06-07-2017 was challenged before the NCLAT by the Corporate Debtor and the same was dismissed by the NCLAT, vide its Order dated 08-01-2019. Meanwhile, the Resolution Plan for the Corporate Debtor was approved by the NCLT on 30-01-2020.

To read more, please visit the link below:


https://theindianlawyer.in/nclat-reiterates-that-banks-cannot-debit-amounts-from-the-corporate-debtor-company-during-moratorium/


#nclat #bank #corporatedebtor #company #moratorium

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