In case of realisation of Security Interest u/s 52(1)(b) of IBC, whether a Secured Creditor can charge interest till the date of realisation of sale proceeds or he is confined to the amount of principal and interest as claimed in Form D – DBS Bank India Ltd. Vs. Kuldeep Verma, Liquidator of Eastern Gases Ltd. – NCLAT New Delhi

The question to be answered in this Appeal is as to whether in addition to the interest which was claimed in the Form D by the Appellant whether he is also entitled to claim interest till the date when sale proceeds were received by the Appellant/Bank. NCLAT held that when a claim is filed in Form D where interest and principal have been included up to the date of liquidation commencement date, claimants cannot be allowed to claim any further amount in addition to the amount which they have claimed in their Form D. Permitting any claimant to increase his claim on any ground or reason will not be in accordance with the liquidation scheme as contemplated by the Liquidation Process, Regulations. When a statute provides for liquidation commencement date as a date up to which claims can be filed and proved, no claim thereafter can be entertained by the Liquidator.

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