R.P. Nagrath, Member - (1.) Petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (for short to be referred here-in-after as the 'Code') filed by the Corporation Bank (Financial Creditor) was admitted against the Corporate Debtor on 24.07.2017 and Mr.Dinkar Tiruvannadapuram Venkatsubramanian, Registration No.IBBI/IPA-001/IP-P00003/2016-2-17/10011 was appointed as Interim Resolution Professional (IRP) on 27.07.2017 with necessary directions. While admitting the petition, the moratorium was declared in terms of Section 14 (1) of the Code as under:- "a) the institution of suits or continuation or pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor."
(2.) The Interim Resolution Professional appointed is now functioning as Resolution Professional as decided by the committee of creditors in the first meeting held on 22.08.2017.
(3.) It is averred that under Section 17 (1) (d) of the Code, the financial institutions maintaining the accounts of the corporate debtor have to act on the instructions of the IRP in relation to such accounts and furnish all information relating to the corporate debtor available with them to him. The respondent i.e. Indian Overseas Bank, Hosur Branch is one of the financial creditor of the corporate debtor and constitutes 4.08% of the total value of the financial debt. The applicant vide emails dated 31.07.2017 and 05.08.2017 intimated the respondent bank with regard to the commencement of corporate insolvency resolution process (CIRP) and the orders passed by the Adjudicating Authority and issued the instructions in terms of Section 17 (d) of the Code to the respondent to freeze all debit transactions until further communication and further instructed the bank not to allow payment of any cheque without the instructions of the applicant. Copy of the emails dated 31.07.2017 and 05.08.2017 are at Annexure A-5 (Colly).;