https://www.taxtmi.com/caselaws?id=762957 A secured creditor under the Insolvency and Bankruptcy Code may choose to realise security interest in liquidation, but Regulation 21A requires timely intimation and payment of the proportionate CIRP and liquidation costs demanded by the liquidator. Where the creditor intimated an intention to realise security yet failed to make the required payment despite repeated demands, the secured asset was treated as part of the liquidation estate. Participation in joint lenders' meetings and consent to a joint sale arrangement, especially where assets were intermingled and not clearly demarcated, further weakened any claim to independent realisation. The appellate challenge was therefore rejected and the declaration subsuming the security interest into the liquidation estate was sustained. en-us Mon, 09 Dec 2024 00:00:00 +0530 Wed, 11 Dec 2024 08:15:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762957 A secured creditor under the Insolvency and Bankruptcy Code may choose to realise security interest in liquidation, but Regulation 21A requires timely intimation and payment of the proportionate CIRP and liquidation costs demanded by the liquidator. Where the creditor intimated an intention to realise security yet failed to make the required payment despite repeated demands, the secured asset was treated as part of the liquidation estate. Participation in joint lenders' meetings and consent to a joint sale arrangement, especially where assets were intermingled and not clearly demarcated, further weakened any claim to independent realisation. The appellate challenge was therefore rejected and the declaration subsuming the security interest into the liquidation estate was sustained. Case-Laws IBC Mon, 09 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762957