Treatment of Assets/Fixed Deposits identified by Successful Resolution Applicant (SRA) after implementation of Resolution Plan/Post approval of Resolution Plan and which were not included in Information Memorandum – SPS Steels Rolling Mills Ltd. Vs. Indian Overseas Bank and Ors. – NCLT Kolkata Bench
January 18, 2024
In this case, NCLT, Kolkata Bench approved the resolution plan and the SRA took over the management of the Corporate Debtor. Around March, 2020, the SRA came to know about certain FDRs which were issued before for commencement of CIRP lying in the name of the corporate debtor with a Bank. SRA requested that said FDRs may be liquated and the corresponding amount with commercial interest may be returned to the corporate debtor which is now under the management and control of the SRA.
Hon’ble NCLT, Kolkata Bench holds that:
(i) The Corporate Debtor which is now under the control of SRA is not entitled to get the proceeds of the Fixed Deposits lying with the Bank.
(ii) Bank have made full claim of their dues before Resolution Professional during CIRP without adjusting the Fixed deposits amounts lying with them and their claims were settled as per the Resolution plan. Therefore, even the Respondent Bank is not entitled to retain the balance amount and will have to refund it along with rate of Interest applicable to the FDR.
(iii) Once the matter is be placed before the erstwhile members of the CoC of Corporate Debtor, and the distribution of this amount is decided by them in the CoC meeting which will include the respondent Bank as well.
