Distribution of Liquidation Proceeds to Secured Creditors Must Be Based on Admitted Claims under IBC S. 53:

The NCLAT ruled that the distribution of liquidation proceeds to secured creditors must be based on admitted claims under the Insolvency and Bankruptcy Code (IBC). The case involved a dispute over the distribution of funds during the liquidation of a corporate debtor. The tribunal directed that the claims must be verified and admitted before any distributions are made, ensuring fairness in the process. This decision reaffirms the principles of transparency and fairness in the liquidation process under IBC.