https://www.taxtmi.com/caselaws?id=391466 A secured creditor with a prior enforceable lien over identified machinery and related assets may invoke section 52 of the Insolvency and Bankruptcy Code, 2016 to realise its security in liquidation. The lien, supported by an unchallenged arbitral award, was treated as distinct from the corporate debtor's hypothecation in favour of bankers, to which the respondent was not a party. The liquidator's pari passu distribution argument failed because the respondent's secured position could not be displaced or treated as equal to the bankers' charge without evidence that both interests stood on the same footing. The machinery was therefore excluded from the general liquidation pool unless the security interest was relinquished. en-us Wed, 20 Nov 2019 00:00:00 +0530 Wed, 29 Jan 2020 07:11:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=391466 A secured creditor with a prior enforceable lien over identified machinery and related assets may invoke section 52 of the Insolvency and Bankruptcy Code, 2016 to realise its security in liquidation. The lien, supported by an unchallenged arbitral award, was treated as distinct from the corporate debtor's hypothecation in favour of bankers, to which the respondent was not a party. The liquidator's pari passu distribution argument failed because the respondent's secured position could not be displaced or treated as equal to the bankers' charge without evidence that both interests stood on the same footing. The machinery was therefore excluded from the general liquidation pool unless the security interest was relinquished. Case-Laws Insolvency and Bankruptcy Wed, 20 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=391466