Adjudicating Authority Cannot Direct Realisation Of Security Interest U/S 52(5) Of IBC In Absence Of Resistance From Corporate Debtor: NCLT Mumbai

The NCLT (National Company Law Tribunal), Mumbai, has ruled that the "Adjudicating Authority is not empowered to direct realization of security interest under Section 52(5) of IBC (Insolvency and Bankruptcy Code) in absence of resistance from corporate debtor." Section 52(5) deals with secured creditors enforcing their security interest outside the Corporate Insolvency Resolution Process (CIRP). The NCLT clarified that its role under this section is primarily when there is a dispute or resistance from the corporate debtor, not to automatically direct realization where no such conflict exists. This defines the limits of the Adjudicating Authority's intervention.