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2022 (4) TMI 939 - Tri - Insolvency and BankruptcyAdmission of claim as unsecured financial debt - subsistence of security interest has not been proved by the applicant bank in a manner prescribed under the Code - Financial Debt or not - HELD THAT:- From Section 52(3) of the Code read with Regulation 21 provides that the proof of security interest is ascertained from records available with the 'Information Utility' as per the Code, through Certificate of Registration of 'Charge' issued by the ROC under section 77 of the Companies Act, 2013 or if there is any proof of Registration of 'Charge' with CERSAI. In the present case, it is observed from the documents on records that the applicant had mentioned about realising the security interest in claim Form D filed on 26.05.2021. The proofs of security interest was not available when the applicant submitted its claim form which is mandated by Regulation 21 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The liquidator after verification of the claim Form D and other documents annexed therein had observed that the charge was not registered and sent a mail communication to the applicant on 03.07.2021. From the facts provided it is evident that the liquidator was not provided with the proof of registration of security interests during the period stipulated as per Regulation 30 and the liquidator classified the applicant as unsecured creditor based on the information as provided by the applicant. Thus with regard to the vehicle loans the liquidator has acted correctly by classifying applicant as unsecured and not allowing to realise their security interest. Amount advanced by the applicant to the group companies of the corporate debtor on the security of FDRs based on a letter of authorisation granted by the corporate debtor - HELD THAT:- Based on the documents placed on records the letters granted by the corporate debtor to the applicant bank are mere authorisations to extend loans to the borrowing companies and no guarantee extended by the corporate debtor and to that extent there exists no payment obligation on the corporate debtor - In the present case, the applicant bank had disbursed money to borrowing companies and no guarantee deed was executed by the corporate debtor and as such there is no payment obligation on the corporate debtor for the default committed by the borrowing companies. Application dismissed.
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