https://www.taxtmi.com/caselaws?id=788840 A security deposit retained by the corporate debtor could not be unilaterally appropriated after commencement of CIRP towards pre-CIRP dues, because the moratorium under the Insolvency and Bankruptcy Code barred post-commencement recovery actions against the debtor's estate. The deposit remained the corporate debtor's property until lawful adjustment, and the claimed amount had to be pursued through the insolvency claim process. The deposit also could not be treated as an independent bank guarantee or letter of credit, and no mutual cross-claims existed to justify set-off. The unilateral adjustment was therefore inconsistent with the insolvency framework and was disallowed. en-us Mon, 23 Mar 2026 00:00:00 +0530 Mon, 30 Mar 2026 08:48:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788840 A security deposit retained by the corporate debtor could not be unilaterally appropriated after commencement of CIRP towards pre-CIRP dues, because the moratorium under the Insolvency and Bankruptcy Code barred post-commencement recovery actions against the debtor's estate. The deposit remained the corporate debtor's property until lawful adjustment, and the claimed amount had to be pursued through the insolvency claim process. The deposit also could not be treated as an independent bank guarantee or letter of credit, and no mutual cross-claims existed to justify set-off. The unilateral adjustment was therefore inconsistent with the insolvency framework and was disallowed. Case-Laws IBC Mon, 23 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788840