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Informative

NCLAT Holds ICBC Cannot Retain ₹2760 Crore FD As Reliance Owed No Dues; Lien Letter Limited To Debtor’s Own Liabilities

Update / Judgement Date

30 Sept 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderBankingInsolvency & Bankruptcy Code

NCLAT ruled that ICBC cannot retain ₹2760 crore fixed deposit as Reliance owed no dues and the lien letter was restricted to the debtor’s own liabilities. The tribunal emphasized that third-party funds cannot be blocked unjustifiably, reinforcing principles of financial propriety and contractual limitation. The ruling has broad implications for banking operations, creditor rights, and corporate finance management under insolvency scenarios.