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of The NCLAT upheld the NCLT's order dismissing the appellant's claim for refund of margin money deposited to secure bank guarantees during liquidation. The tribunal found that the bank guarantees had been invoked prior to the interlocutory application, rendering the application infructuous. The margin money, being a security deposit to the bank, does not constitute an asset of the corporate debtor once the guarantee is invoked. Upon invocation, the margin money is applied towards the guaranteed amount payable to the beneficiary, and no part thereof reverts to the corporate debtor. Consequently, the liquidator is not entitled to treat the margin money as corporate debtor's asset for preservation. The appeal was dismissed, confirming that the invoked bank guarantees and associated margin money are not refundable to the corporate debtor or its liquidator.
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