Liquidation proceeds to be distributed in proportion to admitted claim of secured creditors

State Bank of India Vs IDBI Bank Ltd. (NCLAT Delhi)

NCLAT Delhi held that distribution of liquidation proceeds has to be in proportion to the admitted claim of secured creditors as per section 53(1) of the Insolvency and Bankruptcy Code and the same cannot be on the basis of security interest of different secured creditors.

Facts- On an Application u/s. 7 filed by the State Bank of India (SBI), the Corporate Debtor, ESS DEE Aluminium Limited was admitted to Corporate Insolvency Resolution Process (CIRP) by Order dated 14.02.2020 passed by the NCLT, Kolkata B

Please become a Premium member. If you are already a Premium member, login here to access the full content.