Lien Created On CD’S Account Prior To CIRP Cannot Continue After Moratorium Is Imposed U/S 14 Of IBC: NCLT Mumbai
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Alleging the Corporate Debtor to be a defaulter, the Regional Provident Fund Commissioner (“EPFO”) attached the current account of Corporate Debtor in HDFC bank on 24.08.2018 and created its lien on the said account lien created on the Corporate Debtor’s account prior to initiation of CIRP cannot su
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- Alleging the Corporate Debtor to be a defaulter, the Regional Provident Fund Commissioner (“EPFO”) attached the current account of Corporate Debtor in HDFC bank on 24.08.2018 and created its lien on the said account
- lien created on the Corporate Debtor’s account prior to initiation of CIRP cannot sustain after moratorium is imposed under Section 14 of IBC post CIRP commencement, as it will hinder the entire resolution process.
- Regional Provident Fund Commissioner found Rs. 3,10,68,057/- to be outstanding from the Corporate Debtor.
- Subsequently, on 24.01.2020 the Corporate Debtor was admitted into Corporate Insolvency Resolution Process (“CIRP”) by the NCLT. EPFO also filed its claim in the CIRP, which was admitted by the Resolution Professional.
- When the Resolution Professional became aware of the attachment of bank account by EPFO, it filed an application before NCLT seeking de-freezing of the account.
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