Future debt claims may be proved in liquidation and are discounted to present value before distribution. A person may prove a claim whose payment was not yet due on the insolvency commencement date and share in distribution like any other stakeholder. If the debt has still not fallen due at the time of distribution, the admitted claim is reduced by a present-value formula, unless the contract provides otherwise, using the admitted claim value, the relevant government securities yield published by the Reserve Bank of India, and the period remaining until the debt becomes payable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Future debt claims may be proved in liquidation and are discounted to present value before distribution.
A person may prove a claim whose payment was not yet due on the insolvency commencement date and share in distribution like any other stakeholder. If the debt has still not fallen due at the time of distribution, the admitted claim is reduced by a present-value formula, unless the contract provides otherwise, using the admitted claim value, the relevant government securities yield published by the Reserve Bank of India, and the period remaining until the debt becomes payable.
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