NCLT: RP Entitled to Defreeze Fixed Deposits Forming Part of Corporate Debtor’s Assets
Pranav B Prem
The National Company Law Tribunal (NCLT), New Delhi Bench comprising Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Shri Atul Chaturvedi (Technical Member), has held that Fixed Deposit Receipts (FDRs) constitute part of the financial assets of the Corporate Debtor. Therefore, it is within the statutory authority of the Resolution Professional (RP) to approach the concerned bank to seek their defreezing and take control of the proceeds to facilitate the Corporate Insolvency Resolution Process (CIRP).
The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, by Mr. Anshuj Dhingra, the RP of Bindal and Bindal Batteries (P) Ltd., seeking directions for defreezing and realising FDRs that were originally created from the Corporate Debtor's funds. The reliefs sought included payment of the RP’s professional fees and applicable GST, reimbursement of CIRP costs as approved by the Committee of Creditors (CoC), defreezing of two FDRs held in the names of suspended directors, and defreezing of the Corporate Debtor’s current account maintained with Punjab National Bank, Kasna Branch, Greater Noida.
The RP submitted that pursuant to the CIRP proceedings, the bank account of the Corporate Debtor had been placed under a debit freeze, even though the signatory was subsequently updated to reflect his role. He also pointed out that two FDRs—one for ₹20 lakhs in the name of Mrs. Disha Aggarwal and another for ₹15 lakhs in the name of Mr. Pankaj Agarwal—had been created using funds drawn from the Corporate Debtor’s current account and therefore rightfully belonged to the Corporate Debtor’s estate.
Earlier, by an order dated 30.05.2025 in a related application, the Tribunal had directed the CoC to release the RP’s professional fee of ₹20,40,476 along with GST. However, in a subsequent meeting held on 11.06.2025, the sole CoC member, HVR Industries Pvt. Ltd., refused to comply and instead advised the RP to seek relief for appropriation of fees and CIRP costs (revised to ₹5,50,000) from the maturity proceeds of the said FDRs.
Upon considering the submissions, the Tribunal reiterated the RP’s duty under Section 25(1), read with Section 25(2)(a) and (b) of the IBC, to preserve and protect the assets of the Corporate Debtor. It observed that FDRs, even if standing in the names of suspended directors, constitute financial assets of the Corporate Debtor, especially when created from its own funds. It held that it was well within the RP’s lawful authority to approach the concerned bank and take necessary steps to defreeze and realise such deposits.
The Bench noted, “Fixed Deposit Receipts standing in the name of the Corporate Debtor constitute financial assets and form an integral part of the Corporate Debtor’s estate.” It further emphasized that such steps are essential for preserving asset value and ensuring effective conduct of the CIRP, in line with the overarching objective of the Code.
The Tribunal granted liberty to the RP to take all necessary steps for seeking defreezing and realisation of the FDRs and to approach the Adjudicating Authority again, if further directions were required. Ultimately, the application was disposed of with the Tribunal granting the RP liberty to take all lawful steps to realise the FDRs and recover the financial dues, affirming that such actions fall squarely within the RP’s statutory responsibilities.
Appearance
For the Applicant: Mr. Anshuj Dhingra, RP in person
Cause Title: HVR Industries Pvt. Ltd. V. Bindal And Bindal Batteries (P) Ltd. Also In The Matter Of Anshuj Didngra V. Committee Of Creditors (Coc) Through Its Sole Member Hvr Industries (P) Ltd. & 1 Anr.
Case No: IA NO. 3127/2025 IN CP (IB) NO. 199/2018
Coram: Shri Manni Sankariah Shanmuga Sundaram [Judicial Member], Shri Atul Chaturvedi [Technical Member]
