# Tata Capital Limited vs. Mr. Sanjay Mahajan

> NCLAT judgment dated 2026-10-06. Citation: TCN-2026-NCLAT-00281. Tata Capital Limited (Appellant), a secured financial creditor, had provided credit…

- **Court:** NCLAT
- **Order date:** 6 Oct 2026
- **Citation:** TCN-2026-NCLAT-00281
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tata-capital-limited-vs-sanjay-mahajan-5o7xh

## Summary

### Background

Tata Capital Limited (Appellant), a secured financial creditor, had provided credit facilities to an unnamed Corporate Debtor, securing them with hypothecated assets. Following the Corporate Debtor's default and classification of its loan accounts as NPA, CIRP and subsequent liquidation proceedings were initiated. Mr. Sanjay Ramdas Mahajan was appointed as Liquidator. The Appellant filed its claim in Form-D, asserting its status as a secured financial creditor and its intention not to relinquish its security interest, seeking to realize the hypothecated assets independently under Section 52 of the IBC. However, the Liquidator sought to include these assets in the liquidation estate. The Adjudicating Authority (NCLT) denied the Appellant's right to realize its security

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## Facts

Tata Capital Limited (Appellant) sanctioned credit facilities to a Corporate Debtor, securing them with specific hypothecated equipment and assets.

The Corporate Debtor defaulted in repayment, leading to its loan accounts being classified as NPA.

CIRP and subsequent liquidation proceedings were initiated against the Corporate Debtor under Section 33(1) of the IBC.

Mr. Sanjay Ramdas Mahajan was appointed as Liquidator for the Corporate Debtor.

The Appellant filed its claim in Form-D as a secured financial creditor, disclosing details of assets and security interest, and stating it had not relinquished its security interest.

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## Issues and analysis

### Issue 1: Whether the Appellant, as a secured creditor, validly and within the prescribed period exercised …

**Ratio:** A secured creditor must validly and timely exercise its option under Section 52 of the

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**Reasoning:** The Appellant submitted Form D on 01.10.2024, after liquidation commenced on 13.08.2024.

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**Interpretation:** Section 52(1) offers two options: relinquish security interest or realize it

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**Application:** Tata Capital Limited failed to make a clear, timely election within the 30-day

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## Parties

- **Judges:** Sharad Kumar…; Arun Ba…; +1 more
- **Appellants:** Tata Capital…; Erstwhile Tata…
- **Respondents:** Sanjay Ma…
- **Other parties:** Stakeholders…; Sanjay Ramdas…
- **Advocates:** Abhishek…; Ekta Bh…; +5 more

## Timeline

- **2023-02-24 — CIRP Admi…**: The Corporate Debtor…
- **2024-08-13 — Liquidation In…**: Upon rejection of the Resolution Plan, the liquidation process of the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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