C&M secured relief for IDBI Bank and Bank of India in the liquidation of AMW Motors Ltd.

The Chandhiok and Mahajan Team comprising of Himanshu Vidhani and Shloka Dikshit successfully represented IDBI Bank and Bank of India in the liquidation of AMW Motors Limited.

The Banks being Financial Creditors had challenged the Liquidator’s decision to distribute liquidation proceeds based on a pre-CIRP DRT Recovery Certificate, rather than their contractual entitlements under the agreement with the Corporate Debtor.

The Hon’ble Tribunal held that distribution must strictly follow Section 53 of the IBC, and that the Liquidator cannot rely on the Recovery Certificate, which has not been enforced. In allowing the application, the Tribunal directed the Liquidator to reconsider the claims and effect distribution as per contractual entitlements, providing critical clarity on the interface between recovery certificates and the waterfall mechanism under the Code.

Click here to view the order passed by the Hon’ble NCLT.

Final Order dated 23 July 2025 - IDBI Bank and Bank of India.pdf

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Himanshu Vidhani and Shloka Dikshit successfully represented IDBI Bank and Bank of India in the liquidation of AMW Motors Limited.