Jagat Pal Paliwal & Anr. vs Jassum Propcon Projects Private Limited

ORDER

a)

Allow the instant application;

b)

De- freeze the Account No. 510101000603243 maintained by Corporation Bank and Account No. 1011612010000005 maintained by RBL Bank;

c)

Restrain the Respondent No. 1 and Respondent No. 4 from proceeding against the Corporate Debtor during pendency of the insolvency proceedings before this Tribunal;

d)

Direct the Respondent No. 1 to keep its letter dated 22.09.2016 and 07.10.2016 as addressed to Corporation Bank and RBL bank in abeyance during the pendency of insolvency proceedings;

e)

Direct the Respondent No. 4 to keep its direction as regards freezing of the accounts of the Corporate Debtor in abeyance during the pendency of the insolvency proceedings;

f)

Pass an ex-parte ad-interim order in terms of prayer (d) and (e) above; and

g)

Pass such other order / directions as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the case.

i.

That an Application was preferred by Jagat Pal Paliwal & Anr., Financial Creditors in class of Corporate Debtor, for initiating Corporate Insolvency Resolution Process (`CIRP') of the Corporate Debtor, under Section 7 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, before this Tribunal. This Tribunal vide order dated 31.10.2019 initiated CIRP of the Corporate Debtor and appointed the Applicant Mr. Sapan Mohan Garg as the Interim Resolution Processional to carry out the functions as envisaged under IBC.

ii.

That Applicant vide its letter dated 21.11.2019 intimated Respondent No. 2 and vide its letter dated 21.11.2019 and 26.11.2019 intimated the Respondent No. 3, regarding commencement of CIRP and appointment of Applicant as Interim Resolution Professional under the provisions of IBC in the matter of Corporate Debtor. The Respondent No. 2 i.e. the Corporation Bank vide its letter dated 25.11.2019 intimated the Applicant that the account of the Corporate Debtor bearing No. 510101000603243 is frozen as per the instruction of CBI.

iii.

That the Applicant time and again through various mails requested Respondent No. 2 for providing copy of the CBI notice which directed to freeze the bank accounts of the Corporate Debtor. However, till date the Respondent No. 2 has not provided any copy of the notice of CBI. The Respondent No.1 vide its letter dated 07.10.2016 addressed to Respondent No. 3 requested the Respondent No. 3 to stop operations of the bank account of the Corporate Debtor herein. Consequently, just after issuance of letter dated 07.10.2016 the accounts of the Corporate Debtor were marked frozen.

iv.

That Respondent No. 3 vide its email dated 03.02.2020 intimated the Applicant by attaching a letter that they received letter from Ministry of Corporate Affairs directing them to freeze the accounts of the companies which have been struck off under Section 248 of the Companies Act, 2013 for non-filing of annual returns or balance sheet consequently for two financial years.

v.

That the Applicant vide its email dated 05.02.2020 asked the Respondent No. 3 to explain under which circumstances they had marked their accounts as frozen as they were aware that the Corporate Debtor is undergoing CIRP. Further, the Applicant vide its email dated 06.03.2020 requested Inspector of Police, CBI to de-freeze the Bank Accounts of the Corporate Debtor and enable the Applicant to proceed with the CIRP of the Corporate Debtor. CBI replied to the Applicant vide email dated 13.03.2020, wherein it was informed that the charge sheet has already been filed and the case is under trial and therefore, all the documents/articles/bank accounts seized during investigation can be released by the concerned court i.e. Special Judge, CBI, Haryana at Panchkula.

vi.

That on account of marking the above accounts as freeze, the Resolution process of the Corporate Debtor is being interfered with as the amount of Rs.59,35,792/- which is lying in the said accounts, if permitted to be de-freezed, may facilitate resolution of the Corporate Debtor and carrying of the operations of the Corporate Debtor as a going concern.

vii.

That the Applicant in the said background can accordingly, utilize the funds for meeting the day to day expenses. In the above facts and circumstances instant application is being filed by the Applicant for de-freezing of accounts.

(a)

the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;

(b)

transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein;

(c)

any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

(d)

the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.