Charge on creditor claims can be imposed to enforce liability and alter payment priority in insolvency proceedings. Adjudicating Authority may direct creation and enforcement of a charge against debts, obligations, mortgages or interests held by or due from the corporate debtor to give effect to an order under section 66, and may make further directions for enforcement; the statutory explanation excludes bona fide assignees for value and without notice. If the person ordered is a creditor, the Authority may order that whole or part of that debt and interest rank after all other debts in the payment priority.
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Provisions expressly mentioned in the judgment/order text.
Charge on creditor claims can be imposed to enforce liability and alter payment priority in insolvency proceedings.
Adjudicating Authority may direct creation and enforcement of a charge against debts, obligations, mortgages or interests held by or due from the corporate debtor to give effect to an order under section 66, and may make further directions for enforcement; the statutory explanation excludes bona fide assignees for value and without notice. If the person ordered is a creditor, the Authority may order that whole or part of that debt and interest rank after all other debts in the payment priority.
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