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

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.

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.

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