The scope of an adjudication of the security interest during a liquidation process is provided only in Section 52(3) of IBC – Culver Max Entertainment Pvt. Ltd. Vs. National Company Law Tribunal and Ors. – Calcutta High Court
Section 25 does not envisage any adjudication of the rights of a secured creditor to any of the assets. Only if a secured creditor in the liquidation proceedings realizes its security interest in the manner specified in section 52 of the IBC, under sub-section (1)(b) of the said Section, he shall inform the Liquidator of such security interest and identify the assets subject to such security interest to be realized, as per the provisions of Section 52(2). Only in such a case, under Section 52(3), the Liquidator shall verify such security interest before it is realized by the Secured Creditor under the said Section and permit the Secured Creditor to realize only such security interest, the existence of which may be proved either by the records of such security interest maintained by an information utility or by such other means as may specified by the Board.