ICICI Bank Told to Pay Interest on Rs. 8.58 Cr | NCLT

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  • Last Updated on 29 July, 2025

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Insolvency and Bankruptcy Code IBC ruling Section 7 IBC ICICI Liquidation under IBC

Case Details: ICCI Bank Ltd. v. Oceanic Tropical Fruits (P.) Ltd. - [2025] 176 taxmann.com 505 (NCLT- Chennai)

Judiciary and Counsel Details

  • Sanjiv Jain, Judicial Member
  • Venkataraman Subramaniam, Technical Member
  • H. Kartik Seshadri and Ms. Janani, Counsels for the Appellant. 
  • M.L. Ganesh, Sasikumar and A.G. Sathyanarayanan, Counsels for the Respondent.

Fact of the Case

In the instant case, the corporate debtor had availed credit facilities under a consortium arrangement with the SBI (2nd Respondent) as Lead Bank. The ICICI Bank (1st Applicant) filed a petition under Section 7 of the IBC against the corporate debtor, which was allowed.

A property of the corporate debtor was sold, and the sale consideration, which was earlier kept with the ICICI bank, was transferred to the respondent No.2 bank. Thereafter, the liquidator filed an application stating that liquidation estate be recompensed by respondent ICICI Bank as per his demand as ICICI Bank unilaterally and illegally marked lien on liquidation account to an extent of Rs.8.58 crores and since funds were enjoyed by ICICI Bank interest free from 28.09.2021 till 25.10.2022 on which date illegal lien was lifted on directions of Tribunal, ICICI bank to recompense liquidation estate for period for which funds were illegally held by them.

 

NCLT Held

The NCLT held that ICICI Bank was to be directed to pay interest on the amount withheld by it as a lien for the period during which it was withheld. Thus, the liquidator was directed to distribute the sale proceeds from the disposal of assets in the liquidation estate among secured creditors in proportion to the claim amounts submitted by them.

 

List of Cases Referred to

 

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied