Registration Of Security Interest With CERSAI Is Sufficient To Claim Status Of Secured Financial Creditor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has ruled that registration of security interest with CERSAI is sufficient to claim the status of a secured financial creditor, even if the charge is not registered under Section 77 of the Companies Act. This significant decision clarifies the hierarchy and validity of different registration mechanisms for security interests under the Insolvency and Bankruptcy Code (IBC). CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest) registration serves as a crucial public record. This ruling streamlines the process for financial creditors to prove their secured status during insolvency proceedings, ensuring their claims are recognized.