NCLT rules that liquidator cannot have control over assets secured to a creditor in the event it has opted to stay out of the liquidation process

The NCLT (Kolkata Bench) in Anil Goel v. REI Agro Ltd. [[2018] 90 taxmann.com 419 (NCLT – Kolkata)] recently observed where the secured creditor/bank had opted to stay outside liquidation process of corporate debtor to realize its secured interests by initiating action under SARFAESI Act, Adjudicating Authority could not issue direction against bank holding that liquidator could have control over assets secured to bank. The Bench on analysing Section  36(3) (g) of the Insolvency & Bankruptcy Code, 2016 held that only in case of relinquishment, an asset secured to the creditors can be included in the estate to be formed by the liquidator.

March 12th, 2018