The NCLAT dismissed BSE’s appeals challenging NCLT’s authority to direct defreezing of demat accounts during insolvency proceedings. The cases involved two companies they are Future Corporate Resources and Liz Traders and Agents, whose accounts BSE froze for unpaid listing fees.
NCLAT ruled that NCLT has jurisdiction under Section 60(5) of the IBC to entertain such applications and further held that dues leading to account freezes qualify as “debt” under the Code, allowing resolution professionals to access shares for recoveryaffirming IBC provisions take precedence over securities regulations in insolvency matters.