Secured Creditor Is Liable To Pay Liquidator's Fees Under Rule 21A Of Liquidation Regulations If Option U/S 52 Of IBC Is Exercised: NCLAT

The NCLAT has ruled that a secured creditor is liable to pay the liquidator's fees if the option under Section 52 of the IBC is exercised. The case involved the creditor’s responsibility for the liquidation process when the secured creditor opted for the sale of assets under the IBC. The tribunal’s decision underscores the financial obligations of secured creditors during liquidation proceedings, ensuring they contribute to the fees for the liquidator’s services. This ruling enhances the accountability of creditors in the liquidation process.