Once the CIRP is initiated, the amount lying in “No Lien Account” is an asset of the Corporate Debtor and during moratorium, the Bank in any case cannot appropriate this money – Bank of India Vs. Mr. Naren Sheth RP, Jaybharat Textiles & Real Estate Ltd. – NCLAT New Delhi

The Hon’ble NCLAT held that once the CIRP was initiated, the amount lying in the “No Lien Account”, which on that date belonged to the Corporate Debtor, by natural corollary is an asset of the Corporate Debtor which the IRP/RP was obliged to take under his control/custody as per provisions of Section 18 of IBC, 2016. Since the moratorium had commenced, the Bank in any case could not have appropriated this money.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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