Banks cannot freeze FD during CIRP

The National Company Law Tribunal held that IDBI Bank was not entitled to retain the Fixed Term Deposits (FTDs) during the Corporate Insolvency Resolution Process (CIRP). 

The Tribunal directed the bank to transfer the deposits to the CIRP account, reiterating that financial institutions are bound to comply with the directions of the Resolution Professional and cannot obstruct the insolvency process by withholding corporate assets.