Secured Creditor's Security Interest Becomes Part Of Liquidation Estate If Amount As Stipulated Under Regulation 21A(2) Is Not Deposited Within 90 days: NCLAT

NCLAT has ruled that a secured creditor's security interest becomes part of the liquidation estate if the amount stipulated under Regulation 21A(2) is not deposited within 90 days. This decision clarifies the treatment of secured interests in liquidation proceedings. The ruling emphasizes the importance of adhering to statutory timelines. This judgment provides clarity on IBC procedures. The ruling underscores the need for legal compliance.