Shakti Bank, a secured creditor of Trident Ltd, wants to realise its security outside the liquidation…

Substituted section 52(2) requires a secured creditor intending to realise its security to inform the liquidator and identify the asset "within a period of fourteen days from the liquidation commencement date", and if it fails, the security interest is deemed relinquished to the liquidation estate. Where several secured creditors share the asset, realisation needs the agreement of those holding at least sixty-six per cent of the secured claims on it. The new rule does not apply to liquidations begun on or before the 2026 amendment came into force.