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Judgment
K. Anantha Padmanabha Swamy, J
Under consideration is an Interlocutory Application bearing IA No. 517/2020 in CP (IB) No. 294/7/HDB/2017 filed by Liquidator (hereinafter called as Applicant) in the matter of M/s. IVRCL Limited, inter-alia seeking to allow the Applicant to maintain the account at SBI, CCG Branch bearing No. 33674245394, under Regulation 41 of the Liquidation Regulations, for undertaking the liquidation process against the Corporate Debtor.
Brief facts of this case are as under:-
a. That this Adjudicating Authority vide order dated 23.02.2018, has admitted the Company Petition for CIRP and Mr. Sutanu Sinha was appointed as RP of the Corporate Debtor.
b. That subsequently, this Adjudicating Authority by its order dated 26.07.2019 passed an order of Liquidation against the Corporate Debtor and appointed Mr. Sutanu Sinha as the Liquidator.
c. That as per Regulation 41 of Liquidation, a Bank account of Corporate Debtor is maintained by the Applicant with State Bank of India, Old MLA quarters Branch, Narayanguda, Hyderabad as "IVRCL Limited". That all the receivables/disbursement/transactions in relation to the liquidation process of the Corporate Debtor are solely done by the Applicant through the Liquidation Account.
d. That in the branch of SBI where the Liquidation Account is maintained, one of the staff member has tested positive for Covid-19. Therefore, the entire branch is shut from 01.07.2020 and the officials/members working in the said branch are mandated to a quarantine period of minimum 14 days.
e. That in view of the above, the Liquidator is unable to withdraw the amounts deposited in the Liquidation Account. Further, there are no online facilities which is maintained with SBI Branch. Therefore, in such a situation, it is required by the Applicant to operate the Liquidation Account for the purposes of making regular disbursals.
f. That following account of the Corporate Debtor is maintained as current account, as detailed herein: ("Current Account"):
i. SBI CCG BRANCH Current Account Number: 33674245394
g. That the aforesaid account is not treated as a Liquidation Account as per the provisions of Regulation 41 of Liquidation Regulations.
h. That as the branch maintaining the Liquidation Account is not functioning since 01.07.2020. Therefore, the Applicant is unable to undertake any actions pertaining to disbursal of amounts due to the Corporate Debtor.
i. Reiterating the above, Counsel for the Applicant prayed to allow the Application to maintain the Current Account, as an account under Regulation 41 of the Liquidation Regulation, till the SBI branch maintaining the Liquidation Account starts working as per normal course of business.
Heard submissions and perused the record.
Considering the facts and circumstances as stated by the Applicant and further keeping in view the hardship caused by the Covid-19 pandemic throughout and for smooth conduct of Liquidation proceedings, this Adjudicating Authority deems it proper to allow the Application as prayed for.
Accordingly this Adjudicating Authority hereby allow the Applicant to maintain the account at SBI, CCG Branch Account bearing number 33674245394, as an account under Regulation 41 of the Liquidation Regulations, for undertaking the liquidation process of the Corporate Debtor. However, it is made clear that such arrangement shall be in force only until the regular functioning of the Branch where the Liquidation Account of the Corporate Debtor is restored.
With the above observations, IA No. 517/2020 stands disposed of.