https://www.taxtmi.com/caselaws?id=776318 The NCLAT upheld that the secured creditor failed to pay dues under Section 53 of the IBC within the 90-day period mandated by Regulation 21A(2)(a) of the Liquidation Regulations, 2016. The Tribunal confirmed that payment of these dues is mandatory and not contingent on realization of security interest. The secured creditor's request to defer payment until after realization was rejected as legally untenable. The Court emphasized that Section 36(4) protects workmen dues which must be paid in full by the secured creditor and cannot be used to satisfy other creditors. Since no extension or exclusion of time was sought, the automatic vesting of assets in the liquidation estate occurred lawfully. The appeal was dismissed for lack of merit. en-us Tue, 05 Aug 2025 00:00:00 +0530 Fri, 08 Aug 2025 06:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776318 The NCLAT upheld that the secured creditor failed to pay dues under Section 53 of the IBC within the 90-day period mandated by Regulation 21A(2)(a) of the Liquidation Regulations, 2016. The Tribunal confirmed that payment of these dues is mandatory and not contingent on realization of security interest. The secured creditor's request to defer payment until after realization was rejected as legally untenable. The Court emphasized that Section 36(4) protects workmen dues which must be paid in full by the secured creditor and cannot be used to satisfy other creditors. Since no extension or exclusion of time was sought, the automatic vesting of assets in the liquidation estate occurred lawfully. The appeal was dismissed for lack of merit. Case-Laws IBC Tue, 05 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776318