Case Law Analysis
|Supreme Court of India
Section 14 IBC | Pre-CIRP Security Deposits Cannot Be Adjusted Against Pre-CIRP Dues During Moratorium : SC
Supreme Court rules that security deposits made before the commencement of Corporate Insolvency Resolution Process (CIRP) must remain part of the corporate debtor’s estate and cannot be appropriated by operational creditors against pre-CIRP dues. The adjustment of such deposits is permissible only post-adjudication of claims under the IBC, ensuring pari passu treatment of all creditors.