Guarantors' Deposits Deemed Part of Liquidation Estate, Blocking Bank's Unilateral Recovery Under IBC Section 53

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....NCLAT held that the amount deposited by guarantors constitutes part of the liquidation estate, which must be refunded to the corporate debtor's liquidation account. The tribunal emphasized that PNB cannot unilaterally recover amounts from the liquidation estate outside the statutory waterfall mechanism under Section 53 of IBC, 2016. The bank had already relinquished its security interest and filed its claim, which was admitted by the liquidator. The tribunal concluded that trade receivables and payments used to satisfy dues are assets of the corporate debtor and must be distributed through the prescribed legal mechanism, thereby protecting the collective interests of all creditors during the liquidation process.....