On October 1, 2023, the NCLT ruled that February 22, 2023 was the start date of CIRP. The NCLT further ordered that all transactions made between February 2023 and August 2023 be canceled within four weeks, following which Axis Bank was ordered to refund the amounts it had adjusted. The order in fact provided that the moratorium would continue even in the event of suspension of the order authorizing a company to the CIRP.

Aggrieved by this order, Axis Bank and other creditors approached the NCLAT. The appellate court, after hearing the plea, issued an opinion and agreed to hear it at length in December.

The NCLAT modified the NCLT order and directed Axis Bank and other creditors to deposit the money they had adjusted in an interest-bearing account.

“Having already issued notices to us in the appeals and fixed a date for hearing, we are of the view that the ends of justice should be served by ordering Axis bank and other lenders, who are appellants before us , to keep the amount which is to be canceled under the impugned order in a separate interest-bearing account so that, in the event that the amount is ultimately decided to be cancelled, the interests of the debtor company are protected,“NCLAT’s October 29 order states.

The case is now scheduled to be heard on December 3.

Axis Bank was represented by senior advocate Arun Kathpalia and advocate Abhinav Vashisht along with advocates Manmeet Singh and Bhavika Deora, advocates.