IBC Mandates Priority Payment for Insolvency Process & Liquidation Costs

Section 30(4) of IB Code provides that ‘the committee of creditors may approve a resolution plan by a vote of not less than sixty-six per cent of voting share of the financial creditors, after considering its feasibility and viability the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of Section 53, including the priority and value of the security interest of a secured creditor, and such other requirements as may be specified by the Board‘ Given section 30 (4) of the IB Code, it is clear that the ...