Can a bank allow a company, which is facing corporate insolvency resolution proceedings under Insolvency and Bankruptcy Code and has non-performing assets (NPAs) attached to it, to pull out money?
In an embarrassing case, Amtek Auto (corporate debtor) managed to withdraw money from its account in Indian Overseas Bank‘s (IOB) Hosur branch although loans taken from the bank’s Rajiv Circle branch in New Delhi had turned NPAs. The withdrawal took place even after the appointment of an interim resolution professional (IRP) for Amtek Auto under IBC.
“There is total violation of the mandate of law by the key managerial persons of the corporate debtor (Amtek) in this case,” National Company Law Tribunal‘s (NCLT) Chandigarh bench…
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