Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

Regulation 21. Proving security interest

The existence of a security interest may be proved by a secured creditor on the basis of-

(a)

the records available in an information utility, if any;

(b)

certificate of registration of charge issued by the Registrar of Companies; or

(c)

proof of registration of charge with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India. ⁴⁴[21A. ⁴⁵[Relinquishment] of security interest.

(1)

A secured creditor ⁴⁶[,within fourteen days,] shall inform the liquidator of its decision to relinquish its security interest to the liquidation estate or realise its security interest, as the case may be, in ⁴⁷[such format as notified by the Board]: Provided that, where a secured creditor does not intimate its decision within ⁴⁸[fourteen days] from the liquidation commencement date, the assets covered under the security interest shall be ⁴⁹[deemed to be relinquished] to ⁵⁰[***] the liquidation estate. ⁵¹[

(2)

Where a secured creditor proceeds to realise its security interest, it shall pay -

(a)

as much towards the amount payable under clause (a) and sub-clause (i) of clause (b) of sub-section (1) of section 53, as it would have shared in case it had relinquished the security interest, to the liquidator within ⁵²[forty-five] days from the liquidation commencement date; and

⁴⁴ Inserted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019).

⁴⁵ Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as, “Presumption”.

⁴⁶ Inserted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026).

⁴⁷ Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under: “Form C or Form D of Schedule II”.

⁴⁸ Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under:- “thirty days”.

⁴⁹ Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as, “presumed”.

⁵⁰ Omitted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before omission, the words stood as under:- “be part of”. 51 Subs by Notification No. IBBI/2019-20/GN/REG053, dated 6th January, 2020 (w.e.f. 06-01-2020). Prior to substitution it stood as under: “[(2) Where a secured creditor proceeds to realise its security interest, it shall pay as much towards the amount payable under clause (a) and sub-clause (i) of clause (b) of sub-section (1) of section 53, as it would have shared in case it had relinquished the security interest.]”

⁵² Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under:- (b) the excess of the realised value of the asset, which is subject to security interest, over the amount of his claims admitted, to the liquidator within ⁵³[ninety] days from the liquidation commencement date: Provided that where the amount payable under this sub-regulation is not certain by the date the amount is payable under this sub-regulation, the secured creditor shall pay the amount, as estimated by the liquidator: Provided further that any difference between the amount payable under this sub- regulation and the amount paid under the first proviso shall be made good by the secured creditor or the liquidator, as the case may be, as soon as the amount payable under this sub-regulation is certain and so informed by the liquidator. (3) Where a secured creditor fails to comply with sub-regulation (2), the asset, which is subject to security interest, shall become part of the liquidation estate. ⁵⁴[Explanation.- It is hereby clarified that the requirements of this regulation shall apply to the liquidation processes commencing on or after the date of the commencement of the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019.]