Rights of Secured Creditors

    Posted By : CS Shiriti / Published on : 10-Oct-2019 11:46 AM / View : 80 / Comment : 0
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    Querry related to Rights of Secured Creditors in case borrower have been gone in liqudation.

    A bank ltd have grant secured loan to ABC Pvt ltd for 10 cr. During the year bank has demanded additional collateral property to continue the said facilty. ABC Pvt Ltd have arranged to give Collateral of Group Company i.e. XYZ ltd amounting to 2cr along with Corporate Gurantee of 10cr.

    Now, XYZ ltd have gone into liqudation. A Bank has received notice by ROC in terms of Secured Creditors.

    Can Bank have both the rights to sell the property under SARFASI and also invoke Corporate Gurantee??
    Read more on : creditors secured rights

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