High Court’s power under this section cannot be used to undermine a statutory dictate, in present case provided under Ss. 14 and 17 of the Insolvency and Bankruptcy Code, 2016 (IBC). In this view, the amount remitted to the bank account of respondent1 by corporate debtor / company without any authority from appellant, held, was in violation of statutory mandate under IBC. Hence, interim order of High Court defreezing bank account of person concerned who had allegedly conspired with MD of corporate debtor to violate moratorium under S. 14 IBC, modified to the effect that said bank account could only be operated once amount in question transferred in violation of S. 14 IBC, was returned to corporate debtor.

.

 [Sandeep Khaitan Resolution Professional for National Plywood Industries Ltd v. JSVM Plywood Industries Ltd.,(2021) 9 SCC 401]

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Do not copy the content of this website.

Terms And condition

The rules of the Bar Council of India prohibit law firms from soliciting work or advertising in any manner. By clicking on ‘I AGREE’, the user acknowledges that:

  1. The user wishes to gain more information about Re Legal, its practice areas for his/her own information and use
  2. That the information provided in the website is only for personal use or reference of the visitor and is provided only on his/her specific request.
  3. That the material available for downloading on the website and other information provided on the website would not create any lawyer-client relationship.
  4. That we are not responsible for any consequence of any action taken by the user relying on material/information provided under this website.
  5. That in case the visitor has any legal issues; he or she should seek independent legal advice.

The information provided under this website is for informational purposes only and solely available at your request. It should not be interpreted as soliciting or advertising.