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NCLAT: Financial creditor can maintain an application under Section 7 of the IBC which is only relating to the interest component due, without the principal amount becoming due and payable

2022-12-05

In the recent decision of Base Realtors Private Limited v. Grand Realcon Private Limited, the National Company Law Appellate Tribunal, New Delhi (“NCLAT”) has upheld the maintainability of an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) relating to the component of interest due and payable, without asking for the principal amount which has not yet become due and payable.

Brief Facts

Filed under:

India, Insolvency & Restructuring, Litigation, JSA, Insolvency, Insolvency and Bankruptcy Code (India), National Company Law Tribunal

Authors:

Dheeraj Nair , Vishrutyi Sahni , Ridhima Sharma

Location:

India

Firm:

JSA

Bombay High Court: Under SARFAESI and RDDB Act, claims of secured creditors would take priority over the dues of taxing/revenue authorities during the enforcement of security interest.

2022-10-07

In a recent decision, a 3 (three) judge bench of the High Court of Bombay (“Bombay High Court”) in the case of Jalgaon Janta Sahakari Bank Ltd. & Anr. v. Joint Commissioner of Sales & Anr, has held that the dues of secured creditors would rank superior to dues of state government upon sale of a secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) and Recovery of Debts and Bankruptcy Act, 1993 (“RDDB Act”).