The National Company Law Appellate Tribunal (NCLAT), New Delhi bench comprising Justice Yogesh Khanna (Judicial Member) and Mr. Arun Baroka (Technical Member) have held that non-registration of “charge” in terms of Section 77 of Companies Act, 2013 is not a sine qua non for a Creditor to be treated as a “Secured Creditor” under section 3(30) of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Resolution Professional (RP).
The Tribunal observed that the intent of legislature was never to apply Section 77 of the Companies Act upon the Corporate Insolvency Resolution Process (CIRP) because the treatment of “secured creditor” and “security interest” in the liquidation process is entirely different from that…
