Assignee of secured debt allowed to participate in secured creditors' meeting in winding-up proceedings, subject to parties' rights.

An assignee of secured debt may be permitted to participate in a meeting of secured creditors in winding-up proceedings where it has acquired the debt earlier held by another bank. The Gujarat HC allowed the applicant to attend the meeting dated 10.03.2007 as representative of the debt formerly held by ICICI Bank Ltd., while expressly preserving the rights and contentions of all parties in the winding-up proceedings and on sanction of the scheme of arrangement.

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Issues: Whether the applicant, having acquired the debt earlier held by ICICI Bank Ltd., should be permitted to participate in the meeting of secured creditors in the winding-up proceedings of the company in liquidation.

Outcome: The applicant was permitted to participate in the meeting dated 10.03.2007 as representative of the debt formerly held by ICICI Bank Ltd., without prejudice to the rights and contentions of the parties in the winding-up proceedings and in relation to sanction of the scheme of arrangement.

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