Since the Respondent does not have a requisite 60% value in Secured Interest, therefore, the Respondent does not have right to realize its security interest as per provision Section 13(9) of the SARFAESI Act, because it would be detrimental to the Liquidation process and the interest of the remaining ten Secured Creditors – Mr Srikanth Dwarakanath Liquidator of Surana Power Limited Vs. Bharat Heavy Electricals Limited – NCLAT

NCLAT held that it is pertinent to mention that the facts of the present case are different from that in the case of JM Financial Asset Reconstruction Company Ltd. (supra) because in this case, the Liquidator has already concluded that the respondents charge on the Secured Assets is not exclusive. Therefore, the Respondent can realise a Security Interest as per provision Section 13(9) of the SARFAESI Act. Since the Respondent does not have a requisite 60% value in Secured Interest, therefore, the Respondent does not have right to realize its security interest, because it would be detrimental to the Liquidation process and the interest of the remaining ten Secured Creditors.

Since the Respondent does not have a requisite 60% value in Secured Interest, therefore, the Respondent does not have right to realize its security interest as per provision Section 13(9) of the SARFAESI Act, because it would be detrimental to the Liquidation process and the interest of the remaining ten Secured Creditors – Mr Srikanth Dwarakanath Liquidator of Surana Power Limited Vs. Bharat Heavy Electricals Limited – NCLAT Read Post »