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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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