The National Company Law Appellate Tribunal (NCLAT) has set aside an NCLT order that had directed ICICI Bank to return ₹8.92 lakh received in a loan account after commencement of CIRP. The Tribunal ruled that since the payment was not made by the corporate debtor but by an individual co-applicant, the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, was not attracted.
The appeal was filed by ICICI Bank Ltd. against an order of the National Company Law Tribunal (NCLT), New Delhi, dated 22.12.2023, in a matter concerning Trend Flooring Pvt. Ltd., a corporate debtor under liquidation.
The Corporate Insolvency Resolution Process (CIRP) against Trend Flooring Pvt. Ltd. began on 9 October 2019. During the moratorium…