NCLT Hyderabad dismissed an application by subcontractor Peeyush Sharma seeking refund of ₹2.59 crore performance security from IVRCL's liquidation estate.
The tribunal ruled the amount was an operational debt under IBC, not a trust asset, and must be distributed via Section 53 waterfall mechanism.
The order reinforces that contractual retentions in commercial arrangements do not create fiduciary relationships or trust properties.
The disputed amount of ₹2.58 crore was deducted from running bills due to applicant's failure to furnish required bank guarantee.