On failure of One Time Settlement, amount in ‘no lien account’ belongs to ‘Corporate Debtor’

Bank of India Vs Vinod Kumar P. Ambavat (NCLAT Delhi)

NCLAT Delhi held that once One Time Settlement is failed and CIRP is initiated, the amount lying in the ‘no lien account’ belongs to the ‘Corporate Debtor’.

Facts-

This Appeal arises out of the Impugned Order dated 19.01.2021, passed by the Learned Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench, Ahmedabad), in IA 653/2020 in C.P. (IB) No.- 272/NCLT/AHM/2019, wherein the Adjudicating Authority has allowed the Interim Application preferred by the Resolution Professional (‘RP’) seeking a direction to Bank of India/the Appellant herein to release an amount of Rs. 100Lakhs/- held in the ‘no lien account’ for the purpose of CIRP of the ‘Corporate Debtor’.

Conclusion-

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