Tentative determination of security interest and distribution entitlements cannot override a pending challenge to the earlier order.

The liquidator's 04.04.2025 decision on security interest and distribution entitlements was tentative, because it was expressly made in terms of the pending 31.05.2024 order and was placed before the Appellate Tribunal in view of existing proceedings by banks. It was not intended to operate with immediate finality, and its effect was stated to depend on the outcome of the challenge to the earlier order. Accordingly, the decision did not independently determine the rights of secured creditors and could not be treated as a conclusive determination at this stage.

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Issues: Whether the decision dated 04.04.2025 of the Resolution Professional/Liquidator on security interest and distribution entitlements constituted a final determination overriding the pending challenge to the order dated 31.05.2024.

Analysis: The decision dated 04.04.2025 expressly stated that the determination of security interest and distribution entitlements was made in terms of the order dated 31.05.2024 and was being placed before the Appellate Tribunal because some banks had already preferred proceedings. The later observations also made clear that the decision was not intended to operate with immediate finality and that its effect would depend upon the outcome of the pending appeal against the order dated 31.05.2024. In that context, the liquidator's decision was only tentative and did not independently conclude the rights of the secured creditors.

Conclusion: The decision dated 04.04.2025 was not a conclusive determination of security interest or distribution entitlements, and no final legal benefit could be derived from it at this stage.

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