52 (7) – IBC Laws

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

February 9, 2023 / 16 minutes of reading

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.

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 Read Post »

Kuldeep Verma, the Liquidator of Eastern Gases Ltd. Vs. DBS Bank Ltd. – NCLT Kolkata Bench

According to the applicant as contended in paragraph 18, it could only be till the commencement of liquidation whereas as per the respondent which could raise its claims in the form of interest etc. till actual realization. For analysing submission on behalf of the Bank and to decide the issue in hand, it is relevant to refer to Chapter IV Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process)Regulation 2016. A plain reading of even the previous regulation, prior to 25-07-2019,makes clear that it is the date of commencement of liquidation and 30 days thereafter which is time limit and stage for submission of the claims by stakeholders. Admittedly, respondent submitted his claims in form D. Now we see from Form D (Proof of claims of Financial Creditors) or Form C (Proof of claim of operation creditor except workmen and employees), part of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.