The NCLAT New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that the amount deposited with the bank by the corporate debtor in pursuance of an One Time Proposal to show bonafides will remain assets of the corporate debtor and can be taken into custody by the RP under section 18 of the code when the said proposal is not materialised.
Brief Facts
The present appeal has been filed against an order passed on May 3, 2021 by which the appellant was directed to release Rs. 1 crore held in a No Line Account. The corporate debtor was admitted into insolvency on January 3, 2020 in pursuance of which the IRP initiated steps to manage the assets of the corporate debtor…
