https://www.taxtmi.com/caselaws?id=97944 A secured creditor who elects to value its security and prove only for the balance in liquidation must accept that election's legal effect: the security is treated as valued for proof, and no set-off can later be claimed against the auction price of the company's assets unless the court redeems the security. Under section 229 of the Indian Companies Act, 1913, read with section 47 of the Provincial Insolvency Act, the available courses are to realise the security, relinquish it, or value it and prove for the balance. Having chosen the third course, the creditor cannot insist on adjustment of the valued security against sale proceeds. The claimed set-off was therefore impermissible. en-us Fri, 30 Mar 1962 00:00:00 +0530 Wed, 18 Jan 2012 16:31:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97944 A secured creditor who elects to value its security and prove only for the balance in liquidation must accept that election's legal effect: the security is treated as valued for proof, and no set-off can later be claimed against the auction price of the company's assets unless the court redeems the security. Under section 229 of the Indian Companies Act, 1913, read with section 47 of the Provincial Insolvency Act, the available courses are to realise the security, relinquish it, or value it and prove for the balance. Having chosen the third course, the creditor cannot insist on adjustment of the valued security against sale proceeds. The claimed set-off was therefore impermissible. Case-Laws Companies Law Fri, 30 Mar 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97944