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Delhi HC Orders Release of ₹3.01 Crore FDR Under IBC Section 32A
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Delhi High Courtinsolvencycorporate

Delhi HC Orders Release of ₹3.01 Crore FDR Under IBC Section 32A

November 10, 2026

Delhi HC directed release of ₹3.01 crore FDR held by bank, affirming operational creditor protection under IBC Section 32A.

Delhi HC Enforces Immunity Under IBC Section 32A

The Delhi High Court has ordered the release of a ₹3.01 crore Fixed Deposit Receipt (FDR) wrongly attached by a bank, holding that such actions violate the moratorium and operational rights protected under Section 32A of the Insolvency and Bankruptcy Code (IBC), 2016.

Section 32A prohibits any action that disrupts the debtor’s operations during CIRP. The Court ruled that unilateral appropriation of debtor assets—even through set-off—amounts to enforcement action barred during insolvency.

This reinforces the sanctity of Section 32A. Financial institutions must refrain from post-CIRP initiation debits or encashments. Practitioners should invoke 32A proactively to protect debtor assets and ensure fair resolution timelines.

Citations

  • IBC, 2016, Section 32A
Practice Areas:insolvencycorporate

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