Secured Creditors Lose Priority After Relinquishing Security Interest

IDFC Bank Limited Vs Monnet Power Company Limited (NCLT Cuttack) Secured creditors cannot seek priority during distribution of sale proceeds after relinquishing security interest NCLT Cuttack held that after relinquishing its security interest, Secured Creditors cannot seek priority over other similar creditors during the distribution of the sale proceeds of the secured assets. Facts- The present Application is filed by the Liquidator of the Corporate Debtor, i.e., Monnet Power Company Limited (applicant), seeking directions from this Adjudicating Authority for distribution of the balance sale...