Kotak Mahindra Bank NCLAT Appeal Dismissed on Secured Creditor Status

NCLAT dismisses Kotak Mahindra Bank's appeals challenging NCLT orders that classified IDBI Bank and SBI as secured creditors in Gupta Synthetics Ltd.'s liquidation.
The dispute centered on whether restructuring of credit facilities without registering modified charges with ROC invalidated security interests under Companies Act.
Tribunal upheld NCLT's view that Regulation 21 of Liquidation Process Regulations allows proving security interest through CERSAI registration, overriding strict Companies Act requirements.
The ruling affects distribution of ₹34.65 crore liquidation proceeds among financial creditors including Kotak, IDBI, SBI, and Edelweiss ARC.