Supreme Court Bars CTUIL from Appropriating Security Deposit

The Supreme Court upheld NCLT and NCLAT rulings that CTUIL's appropriation of a Rs 108.44 crore security deposit towards pre-CIRP dues violated the IBC moratorium.
The Court held the deposit could only be used for post-CIRP dues, and pre-CIRP claims must be submitted to the resolution professional.
The Court rejected CTUIL's set-off claim, stating the deposit remained the corporate debtor's asset and appropriation violated the moratorium.