NCLAT rejected Tata Capital’s claim over hypothecated assets, ruling it missed the 30-day deadline under Regulation 21A of the CIRP Regulations.
Secured Creditor Loses Claim After Missing 30-Day Deadline: NCLAT Rules
The National Company Law Appellate Tribunal (NCLAT) dismissed Tata Capital’s plea to claim hypothecated assets in a CIRP, holding that it failed to comply with Regulation 21A of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, which mandates filing particulars within 30 days of public announcement.
The Appellate Tribunal upheld the resolution professional’s exclusion of the claim, emphasizing strict compliance with timelines under the IBC framework. It noted that even secured creditors must adhere to procedural discipline to ensure timely resolution. The decision relied on Section 52 of the IBC, which allows enforcement of security interests only if exercised within the prescribed period.
This reinforces the time-bound nature of CIRP. Secured creditors must act swiftly once a case is admitted. Lawyers advising financial institutions should implement internal alerts to meet all CIRP deadlines, particularly under delegated regulations.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 52
- IBC CIRP Regulations, Regulation 21A
