NCLAT held that a secured creditor’s failure to comply with Regulation 21A results in the secured assets forming part of the liquidation estate, allowing the Liquidator to validly sell them through auction.

J&K&L High Court clarifies that once a valid SARFAESI Section 13(2) notice is served during the borrower’s lifetime, no fresh notice is required to legal heirs before taking possession under Section 14.

NCLAT has reaffirmed that mere allegations against a Successful Resolution Applicant, if not impacting statutory compliance under Section 30(2) of the IBC, cannot be a ground to question the CoC’s commercial wisdom in approving a resolution plan.

The Supreme Court held that the Section 14(1)(d) moratorium under the IBC does not prevent the corporate debtor from voluntarily surrendering leased property during CIRP where the CoC, exercising its commercial wisdom, decides retention is unnecessary, thereby upholding the binding nature of CoC decisions.

The NCLAT ruled that while Regulation 39(1A) bars a resolution professional from unilaterally modifying a plan, it does not restrict the CoC’s authority to seek multiple revisions before approval, affirming the primacy of its commercial wisdom.