The NCLT Ahmedabad Bench has held that allegations contained in a forensic audit report cannot extinguish a corporate debtor ownership rights over fixed deposits maintained in its name during the CIRP.
The Bench stated that a forensic audit report, by itself, cannot divest a corporate debtor of ownership over monies standing in its bank accounts or fixed deposits during the Corporate Insolvency Resolution Process (CIRP).
The application was originally instituted by the Resolution Professional under Sections 14, 60(5) and 74 of the Insolvency and Bankruptcy Code, 2016 seeking transfer of fixed term deposits amounting to ₹4.46 crore together with accrued interest to the CIRP account of the corporate debtor. The…