Security interest forms part of liquidation estate if regulation 21A(2)(a) not complied: NCLAT Delhi

Phoenix ARC Pvt. Ltd. Vs Kuldeep Verma Liquidator of KS Oils Ltd. & Ors. (NCLAT Delhi) NCLAT Delhi held that Regulation 21A(2)(a) mandates payment of deposit within 90 days from liquidation commencement date. Since regulation 21A (2)(a) are not complied by the security creditors, security interest will become part of liquidation estate of the Corporate Debtor. Facts- The liquidation process against the Corporate Debtor (“CD”) KS Oils Ltd. commenced.  The Appellant claimed security interest in the immovable property of 12.84 acres in District Purba, Medinipur, Mauza Debhog J.L. No.149 ...