The liquidation phase of the Insolvency and Bankruptcy Code, 2016 (IBC) imposes a structured regime upon secured creditors, requiring them to make timely and transparent elections regarding their security interests. The consequences of procedural non-compliance can be severe, as demonstrated by the National Company Law Tribunal (NCLT), Mumbai Bench, in its judgment dated 13 April 2026 in Tata Capital Financial Services Ltd. v. Sanjay Mahajan (Liquidator) [I.A. No.2828 of 2025 in C.P.(IB) No.3138/MB/2019], (2026) ibclaw.in 1081 NCLT. The Tribunal dismissed an application by a secured financial creditor seeking to exclude hypothecated equipment from the liquidation estate and take independent possession, holding that the creditor’s…
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