https://www.taxtmi.com/caselaws?id=765724 NCLAT dismissed the appeal by a secured creditor bank challenging payment of liquidator's fee under IBC 2016. The bank, having opted to realize security interest independently under SARFAESI Act rather than relinquishing to liquidation estate, argued liquidator's fee was not payable since liquidator didn't directly realize the secured asset. NCLAT held that Regulation 21A of Liquidation Process Regulations mandatorily requires secured creditors to pay their share of liquidation costs within 90 days of intimating intent to realize security interest, regardless of whether liquidator directly handles the asset. The tribunal confirmed liquidator's entitlement to fee under waterfall mechanism provisions and upheld the adjudicating authority's order. en-us Wed, 11 Dec 2024 00:00:00 +0530 Sat, 08 Feb 2025 09:12:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765724 NCLAT dismissed the appeal by a secured creditor bank challenging payment of liquidator's fee under IBC 2016. The bank, having opted to realize security interest independently under SARFAESI Act rather than relinquishing to liquidation estate, argued liquidator's fee was not payable since liquidator didn't directly realize the secured asset. NCLAT held that Regulation 21A of Liquidation Process Regulations mandatorily requires secured creditors to pay their share of liquidation costs within 90 days of intimating intent to realize security interest, regardless of whether liquidator directly handles the asset. The tribunal confirmed liquidator's entitlement to fee under waterfall mechanism provisions and upheld the adjudicating authority's order. Case-Laws IBC Wed, 11 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765724