The National Company Law Appellate Tribunal (NCLAT) has held that unregistered documents, including a Memorandum of Deposit of Title Deeds (MoDT), cannot create a valid security interest to retain title deeds of a corporate debtor‘s property during liquidation proceedings.
Mr. V. Jaisankar, the appellant, filed Company Appeal challenging the order of the National Company Law Tribunal (NCLT), Chennai. The NCLT had allowed an application by the Liquidator of M/s. Ganga Foundations Private Limited (the Corporate Debtor) and directed the appellant to hand over the original title deeds of a property belonging to the Corporate Debtor.
The factual background revealed that the Corporate Debtor was admitted into the