Tribunal observed that the company, being a corporate debtor, is under insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC) in respect of a petition filed by the bank. Committee of Creditors (CoC) voted in favour of creating an initial corpus of Rs.10 crore towards CIRP cost. CoC members pooled the funds to create the same. Department of Revenue, Ministry of Finance, Mumbai, vide an order of July 31, 2018/
June 25, 2018, made provisional attachment of the assets by invoking the provisions of Prevention of Money Laundering Act, 2002. Tribunal said: “The corpus fund so arranged is under the directions of NCLT, Mumbai Bench, to facilitate the insolvency proceedings. “The asset now so generated is in compliance of the order of the Code, therefore, not to be attached by any other authority under law. “This is not an asset of the defaulter company, hence, otherwise also beyond attachment by Directorate of Enforcement.”
The Tribunal directed the resolution professional to open an account for the CIRP purpose of Gitanjali Gems, if deemed fit, under ‘No Lien Account’ not subject to control of any authority or bank.
Escrow Account
-> Bank account will be operated as an Escrow Account under the control and supervision of the NCLT, Mumbai Bench, along with the members of the CoC.
-> Needless to mention the withdrawals are therefore to be ratified and also to be verified by the members of the Committee of Creditors
-> Decision in this regard of CoC to be placed before the Adjudicating Authority to seek permission of withdrawal.
