Secured Creditor Denied Priority Payment After Relinquishing Charge

The National Company Law Tribunal Kolkata Bench dismissed the application (IA(IBC)/101(KB)2022), ruling that a secured creditor who relinquishes the charge on secured assets cannot later seek priority payment. The distribution of assets by the Liquidator was upheld without any issues.

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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.

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