Bona fide disclosure requirements govern under-reporting penalties, and post-penalty immunity applications cannot secure available statutory protectio...
Certificate-of-origin verification procedure governs preferential customs benefits; denial without retroactive verification was set aside with consequ...
Disciplinary Committee jurisdiction and mandatory investigation requirements invalidated cancellation of an insolvency professional's registration and...
Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
The SC held that a cash security deposit made before CIRP remained the corporate debtor's property until actual appropriation, and its unilateral adjustment after commencement of CIRP towards pre-CIRP dues violated the moratorium and the pari passu scheme of insolvency law. Because the appellant had no mutual cross-demands justifying set-off and had already lodged its claim in the insolvency process, recovery of those dues had to proceed through that process. The Court also found that no bank guarantee or letter of credit existed; the deposit did not create a security interest or secured creditor status, so authorities on enforcement of such instruments were inapplicable. The deposit could be adjusted only in accordance with the insolvency process and towards post-CIRP dues.
The SC held that a cash security deposit made before CIRP remained the corporate debtor's property until actual appropriation, and its unilateral adjustment after commencement of CIRP towards pre-CIRP dues violated the moratorium and the pari passu scheme of insolvency law. Because the appellant had no mutual cross-demands justifying set-off and had already lodged its claim in the insolvency process, recovery of those dues had to proceed through that process. The Court also found that no bank guarantee or letter of credit existed; the deposit did not create a security interest or secured creditor status, so authorities on enforcement of such instruments were inapplicable. The deposit could be adjusted only in accordance with the insolvency process and towards post-CIRP dues.
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