SL. No.1

NATIONAL COMPANY LAW TRIBUNAL

COURT HALL NO: II

Hearing Through: VC and Physical (Hybrid) Mode

CORAM: SHRI. RAJEEV BHARDWAJ – HON’BLE MEMBER (J)

CORAM: SHRI. SANJAY PURI - HON’BLE MEMBER (T)

ATTENDANCE-CUM-ORDER SHEET OF THE HEARING OF NATIONAL COMPANY LAW TRIBUNAL,

HYDERABAD BENCH, HELD ON 06.01.2025 at 10:30 AM

TRANSFER PETITION NO.

COMPANY PETITION/APPLICATION NO. IA(IBC)/1384/2023 in CP (IB) No. 10/7/HDB/2017

NAME OF THE COMPANY Kadevi Industries Limited

NAME OF THE PETITIONER(S) Indian Bank

NAME OF THE RESPONDENT(S) Kadevi Industries Limited

UNDER SECTION 7 of IBC

ORDER

IA(IBC)/1384/2023

Orders pronounced, recorded vide separate sheets. In the result, this application

is dismissed.

Sd/- Sd/-

MEMBER (T) MEMBER (J)

Vamsi

IN THE NATIONAL COMPANY LAW TRIBUNAL In the matter of:

INDIAN BANK, FINANCIAL CREDITOR vs M/S KADEVI INDUSTRIES LIMITED, CORPORATE DEBTOR Between CS Dr Ahalada Rao Vummenthala, Liquidator of M/s Kadevi Industries Limited.

….Applicant And The Branch Manager, Axis Bank, AS Rao Nagar, Hyderabad.

….Respondent Date of order : 06.01.2025 CORAM Sri Rajeev Bhardwaj, Hon’ble Member (Judicial)

Sri Sanjay Puri, Hon’ble Member (Technical)

Counsel present For the Applicant : Mr D Gopala Krishna CS Dr Ahalada Rao Vummenthala, Liquidator For the Respondent : Mr VVSN Raju Per : Sanjay Puri, Member (Technical)

O R D E R

1. This application seeks to direct the Respondent Bank to deposit the funds towards Fixed Deposits of the Corporate Debtor (CD) with accrued interest, into the Liquidation Account.

Application

2. It is submitted that, the main CP was admitted into CIRP¹ vide this Tribunal order dated 23.02.2018, and in the subsequent proceedings, the Applicant was appointed as Liquidator on

31.03.2022.

3. On verification of the records, the Applicant came to know that the CD was having the Fixed Deposits in the Respondent Bank worth Rs 69,305, Rs 1,97,53,689 and Rs 41,81,056. In this respect, the Applicant requested the Respondent Bank through various letters to transfer the total amount of Fixed Deposits of Rs 2,40,04,050 along with accrued interest to the liquidation account. But the Respondent Bank has not transferred the said Fixed Deposits to the liquidation account on the pretext that, the said Fixed Deposits were attached with the Maharashtra Sales Tax Department, Income Tax Department and Customs & Central Excise Departments. Hence, this application.

Reply

4. It is stated that, despite being aware of the settled legal position, the present application is filed based on irrelevant, unsustainable and unreasonable grounds. It is further asserted, that the Respondent Corporate Insolvency Resolution Process vide letter2 dated 05.08.2023 informed the Applicant regarding attachment of amounts of the CD by the IT Department, and requested the Applicant to obtain statutory orders, to enable the Respondent to lift the lien on the said amounts. Nevertheless, the Applicant without obtaining any orders from the statutory authorities, filed the instant Application, which is liable to be dismissed at the threshold.

5. It is stated that, the CD’s Current Account bearing No.427010200010496 with the Respondent Bank, has a balance of Rs 18,61,866.11 paise. It is averred that, the Respondent had received a garnishee order under Section 226(3) of the Income Tax Act, 1961 from the Office of the Dy Commissioner of Income Tax vide Notice³ dated 16.06.2016 for an amount of Rs 1,97,53,689, and Clause 4 of the said Notice states that, if the Respondent disburses any amount to the CD after receipt of the said Notice, the Respondent shall become liable to the extent of amounts disbursed. Therefore, the balances available in the said bank account of the CD, cannot be released without lifting the orders issued by the Income Tax Department.

6. It is further asserted that, upon receipt of Notice dated 15.09.2016 from the Office of the Assistant Commissioner of Customs & Central Excise for recovery of tax arrears of Rs 41,31,055, and a Notice dated 09.01.2018 from Sales Ta