2022 (3) TMI 1379 - Tri - Insolvency and Bankruptcy

Recovery of dues under IBC - Section 52(4) of the IBC - HELD THAT - The applicant had an option to recover its dues u/s. 52(4) of the IBC. Once that option is foregone and the charge on the secured assets is relinquished by the secured creditor, the secured creditor cannot once again seek priority payment to the secured first charge creditor. There is no infirmity in the distribution of the assets by the Liquidator. Application dismissed.

Summary

The National Company Law Tribunal Kolkata Bench dismissed the IA(IBC)/101(KB)2022 application, stating that once a secured creditor relinquishes the charge on secured assets, they cannot seek priority payment again. The distribution of assets by the Liquidator was found to have no infirmity.