Government water works contract GST concession applied before its withdrawal, while contractual tax reimbursement claims lay outside advance-ruling sc...
Insolvency and BankruptcyMarch 21, 2024Case LawsAT
Liability to contribute towards Liquidation Process Costs - scope of Financial Institution - The Tribunal found that the appellant, having invested a significant sum by subscribing to redeemable secured non-convertible debentures, falls within the ambit of a "financial institution" as defined by the Reserve Bank of India Act. - The Tribunal upheld the adjudicating authority's order requiring the appellant and other respondents to contribute to the liquidation process costs. - The decision reaffirms the principle that secured financial creditors, even if opting out of the liquidation estate to realize their security interest, must contribute to the liquidation process costs.
Liability to contribute towards Liquidation Process Costs - scope of Financial Institution - The Tribunal found that the appellant, having invested a significant sum by subscribing to redeemable secured non-convertible debentures, falls within the ambit of a "financial institution" as defined by the Reserve Bank of India Act. - The Tribunal upheld the adjudicating authority's order requiring the appellant and other respondents to contribute to the liquidation process costs. - The decision reaffirms the principle that secured financial creditors, even if opting out of the liquidation estate to realize their security interest, must contribute to the liquidation process costs.
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