Money Deposited By Borrower As Precondition For Sanction Of Guarantee Ceases To Be Corporate Debtor's Asset Upon Invocation Of Guarantees: NCLAT

The NCLAT has ruled that "margin money deposited by a borrower" as a "precondition for the sanction of guarantees" "ceases to be a corporate debtor's asset upon the invocation of guarantees." The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a company can be held responsible for the misdeeds of another person.