Authority: Supreme Court of India, Criminal Appellate Jurisdiction

Order Date: 31 July 2026

Case Overview

  • Petition: Interim Resolution Professional (IRP) of Vimla Fuels and Metals Ltd filed Miscellaneous Application No.2278/2026 seeking release of court‑deposited funds to preserve assets of the corporate debtor (CD) in the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (the Code).
  • Background: NCLT, by Annexure A2 order, admitted Vimla Fuels and Metals Ltd to CIRP and appointed the IRP, imposing a moratorium under Section 14 of the Code.
  • Parallel criminal matter: Special Leave Petition (SLP) (Crl.) No.10481 of 2025 filed by Rakhiben (wife of Sanjaykumar Agrawal) sought anticipatory bail after a complaint alleging cheating of Rs 36 crore in an export transaction with Vimla Resources FZE Sharjah, UAE. The Court on 22 July 2025 conditioned anticipatory bail on deposits of Rs 4 crore and Rs 3.5 crore (total Rs 7.5 crore). The SLP was disposed on 3 September 2025 granting bail.
  • Subsequent development: MA No.1186 of 2026 filed by the complainant (second respondent) sought withdrawal of the deposited amounts; the Court allowed withdrawal on 20 April 2026 subject to furnishing a bank guarantee for an equivalent amount plus interest. The deposited sums remain with the Court Registry.

Findings

  • The Court observed that the Rs 5.05 crore (plus accrued interest) transferred from the CD’s bank account on 4 August 2025 and 29 August 2025 constitutes an asset of the CD and must be released to the IRP to enable the CIRP to proceed.
  • The moratorium prevents the complainant from claiming the entire amount; only the balance, after the IRP receives its share, may be released to the complainant upon provision of a bank guarantee.
  • The Court clarified that the criminal proceeding was not intended for recovery of the alleged fraud amount and that non‑cooperation by the petitioner could invite arrest or custodial interrogation.

Final Outcome

  • The Registry is directed to disburse Rs 5.05 crore together with interest accrued on the fixed deposit to the IRP.
  • The complainant may obtain the remaining balance, with interest, after furnishing an appropriate bank guarantee.
  • No alteration to the anticipatory bail order; any future non‑cooperation may lead to arrest applications.

Topics: Insolvency, Court Order