The Assistant General Manager vs Mr Trupalkumar J Patel Resolution ...
- CitationCompany Appeal (AT) (Insolvency) No.2150 of 2024
Ratio decidendi
The rule this decision rests on
Where a bank has, without the corporate debtor's consent, retained and appropriated a sum lying in the debtor's current account, and an application for its transfer to the debtor's account has been allowed, the Tribunal will uphold the direction to transfer the amount. Where the interest awarded on such a sum is excessive, the appropriate measure is to reduce the interest rate to the rate the bank was paying on savings accounts at the relevant time, being the time when the one-time settlement was accepted, while otherwise maintaining the transfer direction.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: The Assistant General Manager, Bank of Baroda ...Appellant
Versus
Trupal Kumar J Patel, RP of Alcock Ashdown (Gujarat) Ltd. (IN CIRP) ...Respondent
Present: For Appellant : Mr. Arun Aggarwal, Mr. Shivam and Mr. Praful Rawat, Advocates.
For Respondent :
ORDER
(Hybrid Mode)
13.01.2025: This appeal has been filed against order dated 02.08.2024
by which the Adjudicating Authority has allowed the application filed by the
Resolution Professional being IA No.49(AHM)2022. The Adjudicating
Authority by the impugned order has directed as following:
"13. In view of the above submissions and documents perused on records, we pass the following order:
ORDER
I. IA 49 of 2021 in CP(IB) 844 of 2019 is allowed.
II. Respondent Bank of Baroda is directed to transfer the amount of Rs.65,78,290.19/- along with interest @ 12% per annum from
Cont'd.../ 2
the date of transfer till its realisation into the bank account of Alcock Ashdown (Gujarat) Limited having Bank Account No.230805500317 with ICICI Bank, Bodakdev Branch, (IFSC Code:
ICIC0002308) within 1 month from the date of this order.
2. From the facts brought on the record, it appears that an OTS was
entered with the Corporate Debtor by the Bank for an amount of Rs.20.74
Crores, which amount was duly paid. Amount of Rs.65,78,290.19/- has been
directed to be transferred, which was laying in the current account and which
was taken by the Bank of Baroda by the Corporate Debtor without there being
any consent. Application was filed by the Resolution Professional, which
application has been allowed and direction has been issued for transfer of
amount.
3. Learned counsel for the Appellant submits that the Corporate Debtor
has gone into liquidation by order dated 03.01.2025, which fact is also
admitted by learned counsel for the Respondent. It is submitted that
Appellant has been directed for payment of interest @12% per annum, which
is excessive.
4. In facts of the present case, while upholding direction by the
Adjudicating Authority to transfer amount of Rs.65,78,290.19/- we reduce
the rate of interest to the extent of the rate of interest which was being paid
by the bank in the saving account at the relevant time in 2017, on the date
Company Appeal (AT) (Insolvency) No.2150 of 2024 3
when OTS was accepted. The Bank shall transfer the amount within four
weeks. Impugned order is modified to the above extent. Appeal is disposed
of accordingly.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Arun Baroka] Member (Technical) Archana/km
Company Appeal (AT) (Insolvency) No.2150 of 2024
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