https://www.taxtmi.com/caselaws?id=774577 A secured creditor that realises its security interest under SARFAESI remains bound to account proportionately for workmen's dues under the applicable statutory distribution scheme, even where the liquidation had commenced before Regulation 21A of the Liquidation Process Regulations took effect. The pari passu rule under Section 53 of the Insolvency and Bankruptcy Code does not apply where the secured creditor has not relinquished security into the liquidation estate. However, Section 52(8) cannot support a direction to contribute to liquidation cost, because that provision is confined to insolvency resolution process costs as defined in the Code. The direction on workmen's dues was upheld, while the liquidation-cost direction was set aside. en-us Tue, 08 Jul 2025 00:00:00 +0530 Fri, 11 Jul 2025 08:39:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774577 A secured creditor that realises its security interest under SARFAESI remains bound to account proportionately for workmen's dues under the applicable statutory distribution scheme, even where the liquidation had commenced before Regulation 21A of the Liquidation Process Regulations took effect. The pari passu rule under Section 53 of the Insolvency and Bankruptcy Code does not apply where the secured creditor has not relinquished security into the liquidation estate. However, Section 52(8) cannot support a direction to contribute to liquidation cost, because that provision is confined to insolvency resolution process costs as defined in the Code. The direction on workmen's dues was upheld, while the liquidation-cost direction was set aside. Case-Laws IBC Tue, 08 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774577