Secured Creditor Not Precluded From Filing Petition U/S 95 Of IBC, Even If Security Interest In Mortgaged Property Is Enforced: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai ruled that a secured creditor can file a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC) against a mortgaged property. The case involved a dispute over the initiation of insolvency proceedings by a secured creditor. The tribunal held that the secured creditor has the right to initiate insolvency proceedings against the mortgaged property to recover dues. This decision underscores the rights of secured creditors under the IBC and the tribunal’s role in facilitating the recovery of debts through insolvency proceedings.