1. This Appeal has been filed challenging the Order dated 14.07.2022 passed by the National Company Law Tribunal, Kolkata Bench, Kolkata (hereinafter referred to as "The Adjudicating Authority") in I.A. No. 883 of 2021 filed by the Liquidator which Application has been allowed by the Adjudicating Authority directing the Appellant to make the payment of 1.84 Crores to the liquidation estate along with interest at the rate of 6%.
2. Brief facts of the case necessary to be noted for deciding this Appeal are:-
(i) The 'Corporate Insolvency Resolution Process' against the Corporate Debtor-Eastern Gases Limited commenced on 08.11.2017.
(ii) The Appellant had sanctioned overdraft facility, short term loan and long term loan to the Corporate Debtor. An order of liquidation was passed by the Adjudicating Authority on 21.08.2018. Public Announcement was made by the Liquidator in Form-B on 26.08.2018. The Appellant on 18.09.2018 filed his claim in Form-D containing the total claim of the Appellant, of principal along with interest of different facilities extended to the Corporate Debtor.
(iii) The Appellant informed the Liquidator on 08.04.2019 about its decision to realize its security interest as per Section 52(i)(b) of the Code in respect of long term loan by remaining outside the liquidation process to realize its debts. Liquidator agreed to hand over possession of assets to the Appellant. Appellant informed the Liquidator that realization of security interest would happen at a rate of Rs. 14.44 Crore. The liquidator informed the Appellant that no person has approached the liquidator willing to buy the assets at price higher than the price intimated by the Appellant. Sale of the assets took place on 22.10.2020. Sale proceeds were received by the Appellant. Appellant informed the completion of sale process. Liquidator enquired about the calculation of the amount realized from the sale of the exclusively charged assets. In meeting of the Stakeholders Committee held on 13.09.2021, Appellant informed that it is entitled to retain the interest amount till the date of distribution to recover its debt and not only the amount at the time of filing of the claim in Form-D. Liquidator filed I.A. No. 883 of 2021 seeking following directions:
"i. Necessary direction upon the Respondent to pay a sum of Rs. 1.84 crores to the Liquidation estate on account of the excess realized moneys as per Section 52(7) of the Code;
ii. Necessary direction of interest @ 12% should be paid by the respondent on the withheld amount of Rs. 1.84 crores from 1st April, 2021 till the date of payment of this amount by the Respondent to the Liquidator Estate."
(iv) The Adjudicating Authority after hearing both the parties had allowed the I.A. No. 883 of 2021. Following order has been passed in paragraph 9:
"For the foregoing reasons, we allow this IA and direct the respondent bank to pay an amount of Rs. 1.84 crores to the liquidation estate along with interest @ 6% on this amount from 1st of April, 2021, till the date of its actual payment by the respondent to the liquidation estate. IA 883/KB/2021 is disposed of and CP No. 482/KB/2017 is listed for progress report on 29 August, 2022."
3. Mr. Krishnendu Datta, Learned Sr. Counsel for the Appellant contends that under Section 52 of the Code, the secured creditor is entitled to realize its security interest. It is submitted that under Section 52(7) where the enforcement of the security interest under sub-section (4) yields an amount by way of proceeds which is in excess of the debts due to the secured creditor, the secured creditor is to account to the liquidator for such surplus. It is submitted that expression used in the sub-section........