Union Bank NCLT Appeal on EMI Transmission Guarantee Refund Dismissed

NCLT Mumbai dismissed Union Bank's application seeking exclusive rights to a Rs 1.84 crore refund from a wrongfully invoked bank guarantee.
The tribunal ruled the refund formed part of EMI Transmission's liquidation estate, not an exclusive secured asset of Union Bank.
Union Bank failed to exercise its security interest rights under Section 52 of IBC within the mandated 30-day liquidation timeline.
The liquidator correctly distributed the refunded amount to all secured creditors (Union Bank, BoB, Standard Chartered) under Section 53.