Challenge to DRT order allowing sale of mortgaged property below ...

Court Quashes Sale, Orders New Auction; Clarifies Secured Creditor Priority in Debt Recovery Tribunal Case.

August 8, 2024

Case Laws Indian Laws HC

Challenge to DRT order allowing sale of mortgaged property below reserve price. Unsecured creditor treated as secured creditor, prioritized over original secured creditors. SCB's rights under LLA not superior to mortgagee's. SCB wrongly converted to secured creditor, preferred over consortium of secured banks. LLA signed post-mortgage initiation, SCB's bid discounted due to wrongful priority. Sumikin Bussan case cited to highlight SCB's limited rights against Karias, not against IOB or Petitioner. Equitable considerations ignored, reserve price crucial to auction terms. DRT directed to conduct fresh auction, recognizing mortgagee as sole secured creditor. SCB can pursue recovery from Karias independently. DRT's sale confirmation quashed. Petition granted by HC.

View Source

← Previous Next →

Challenge to DRT order allowing sale of mortgaged property below ...

Court Quashes Sale, Orders New Auction; Clarifies Secured Creditor Priority in Debt Recovery Tribunal Case.

August 8, 2024

Case Laws Indian Laws HC

You may also like:

Priority Charge - Seeking directions to remove the order of attachment over the property of the borrower, which according to the petitioner, is mortgaged and is a...

Attachment by the sales tax authorities over an apartment in Mumbai - priority of charges - The High Court concludes that the petitioner, as the auction purchaser, holds...

Priority of secured creditors under the SARFAESI Act over claims by the Income Tax Department. The respondent mortgaged the property to the petitioner in 2013-14, prior...

Debts due to secured creditors under SARFAESI Act have priority over debts under FEMA. SARFAESI Act being a later enactment prevails over earlier FEMA. SARFAESI Act...

Secured creditor has priority over Sales Tax Department for recovering dues from borrower/entity. Section 26E of SARFAESI Act and Section 38 of 2002 Act considered....

Priority of dues between the Central Excise Department and secured creditors in cases of attachment of properties for recovery. The Supreme Court held that the Central...

Recovery of tax dues - Attachment of assets - dues of MVAT Authorities’ have charge in priority to the secured creditors or not - This judgment reaffirms the supremacy...

Distribution of proceeds of Resolution Plan - Secured creditors - The conclusion of the committee is that the priority under Section 53(1)(b)(ii) shall be only to the...

Section 53(1) of the Insolvency and Bankruptcy Code (IBC) provides for the order of priority in the distribution of liquidation assets. Financial debts owed to unsecured...

Secured creditor's priority charge over dues upheld. Section 26E of SARFAESI Act grants secured creditors priority over all other debts and taxes. Petitioner bank...

Non-paid dues of Sales Tax department do not constitute a first charge over property. The first charge belongs to Secured Creditors or the State/Central Government...

Recovery of dues (secured debt) - secured creditor has priority over the right claimed by the Revenue over secured debt or not - It is quite clear and evident from...

The Bombay High Court ruled on the priority of secured creditors u/s 26-E of the SARFAESI Act, 2002 over State Tax Authorities' claims. Section 26-E grants priority to...

The HC held that the petitioner bank, being a secured creditor whose security interest was registered with CERSAI prior to the State Tax Department's attachment order,...

Priority in recovering dues - Secured Creditors or Crown debt - secured creditor has preference over the dues of the Income Tax Department.... - HC

Quick Updates: