The Principal Bench of National Company Law Appellate Tribunal (NCLAT), New Delhi, upheld ICICI Bank’s status as a secured financial creditor, holding that fixed deposits pledged as cash collateral constitute valid security during insolvency proceedings. The Tribunal set aside the NCLT’s earlier direction to release the fixed deposits, allowing the appeal and confirmed ICICI Bank’s right to retain its collateral.
The Appellant, ICICI Bank Ltd., filed an appeal challenging the order dated 23.04.2024 passed by the National Company Law Tribunal, Kolkata Bench (hereinafter referred to as “the Adjudicating Authority”) in IA (I.B.C)/548(KB)2024 and in IA (I.B.C)/2093(KB)2023 in C.P. (IB)/1382(KB)2020. The Adjudicating…