Non-Registration of Charges Doesn’t Deny Secured Creditor Status in CIRP: NCLAT Delhi

Home Kraft Avenues Vs Jayesh Sanghrajka (NCLAT Delhi) National Company Law Appellate Tribunal (NCLAT) Delhi has ruled that the non-registration of a charge under Section 77 of the Companies Act, 2013, does not preclude an applicant from being treated as a secured creditor under the Insolvency and Bankruptcy Code (IBC). This decision came in the case of Home Kraft Avenues vs. Jayesh Sanghrajka, where the appellant challenged a decision that categorized them as an unsecured creditor despite a loan agreement securing four flats as collateral. The NCLAT clarified that Section 77(3) of the Companie...