Global Finance Bank Ltd. has extended ₹ 100 crore to GEO Ltd. against mortgage of 50 acre of landed property with building. GEO Ltd. is being liquidated. Global Finance Bank Ltd. seeks to realise the mortgaged property g

Regulation 37 of the IBBI (Liquidation Process) Regulations, 2016 deals with realisation of security interest by a secured creditor (Global Finance Bank Ltd.). Global Finance Bank Ltd. who seeks to realize its security interest shall intimate the liquidator of the price at which he proposes to realise its secured asset. The liquidator shall inform the Global Finance Bank Ltd. within twenty one days of receipt of the intimation, if a person is willing to buy the secured asset before the expiry of thirty days from the date of intimation at a price higher than the price intimated. Where the liquidator informs the Global Finance Bank Ltd. of a person willing to buy the secured asset, Global Finance Bank Ltd. shall sell the asset to such person. If the liquidator does not inform Global Finance Bank Ltd. or the person does not buy the secured asset, Global Finance Bank Ltd. may realise the secured asset in the manner it deems fit, but at least at the price intimated. Where the secured asset is realised under (iii) above, Global Finance Bank Ltd. shall bear the cost of identification of the buyer. Where the secured asset is realised under (iv) above, the liquidator shall bear the cost incurred to identify the buyer. The provisions of this Regulation shall not apply if Global Finance Bank Ltd. enforces its security interest under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or the Recovery of Debts and Bankruptcy Act, 1993.