Relinquishment of security interest on non-payment of Liquidation Costs as per 21A(3) of Liquidation Regulations

Suraksha Asset Reconstruction Ltd. Vs Varsha Bagri (NCLAT Delhi)

Conclusion: Where secured creditor failed to pay the liquidation costs within 90 days after its intention to realize the security interest, the security interest should stand relinquished under Regulation 21A(3) of the Liquidation Regulations, 2016.

Held: Appellant sought to realise its security interest under the SARFAESI Act in the liquidation process of the corporate debtor but the possession of the assets was denied by the liquidator despite an order passed by the Adjudicat

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