The corpus fund arranged by the Committee of Creditors under the National Company Law Tribunals (NCLT) directions towards the cost of corporate insolvency resolution process (CIRP) cannot be attached by any authority, including the Enforcement Directorate, as it is not an asset of the corporate debtor, according to a ruling by the Tribunals Mumbai bench.
ICICI Bank vs Gitanjali Gems
In the matter of ICICI Bank versus Gitanjali Gems, the 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.
After the Committee of Creditors (CoC) voted in favour of creating an initial corpus of 10 crore towards CIR…
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