Federal Bank Limited (Appellant) filed an appeal against an order by the National Company Law Tribunal (NCLT), New Delhi, dated 30.05.2025. The NCLT order dismissed Federal Bank's application, finding no merit in its contentions regarding the distribution of liquidation proceeds of M/s. Dugal Associates Private Limited (Corporate Debtor). The Liquidator (Respondent), Mr. Pradeep Upadhyay, had included the Excise and Taxation Department Gurgaon as a secured financial creditor, relying on the Supreme Court's judgment in *State Tax Officer (1) v. Rainbow Papers Limited*. Federal Bank, a secured financial creditor who had relinquished its security interest, objected to this inclusion and the Liquidator's actions of withholding funds and stopping payment on a cheque.

Federal Bank Limited (Appellant) filed an appeal against an order by the National Company Law Tribunal (NCLT), New Delhi, dated 30.05.2025. The NCLT order dismissed Federal Bank's application, finding no merit in its contentions regarding the distribution of liquidation proceeds of M/s. Dugal Associates Private Limited (Corporate Debtor). The Liquidator (Respondent), Mr. Pradeep Upadhyay, had included the Excise and Taxation Department Gurgaon as a secured financial creditor, relying on the Supreme Court's judgment in *State Tax Officer (1) v. Rainbow Papers Limited*. Federal Bank, a secured financial creditor who had relinquished its security interest, objected to this inclusion and the Liquidator's actions of withholding funds and stopping payment on a cheque.