https://www.taxtmi.com/caselaws?id=750939 The NCLAT ruled on priority of payments under a concession agreement's waterfall mechanism. The Authority sought recovery of premium dues claiming priority over bank debt payments. The Tribunal held that premium payments, being additional concession fees, rank lower in priority than monthly debt service provisions under the escrow agreement's payment waterfall. The court emphasized that parties deliberately categorized premium in a separate clause below debt service provisions, indicating lower priority. Given the entity's resolution was in final stages under an approved framework, the Authority could not terminate the concession agreement. Application was allowed. en-us Tue, 02 Apr 2024 00:00:00 +0530 Thu, 04 Apr 2024 04:52:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750939 The NCLAT ruled on priority of payments under a concession agreement's waterfall mechanism. The Authority sought recovery of premium dues claiming priority over bank debt payments. The Tribunal held that premium payments, being additional concession fees, rank lower in priority than monthly debt service provisions under the escrow agreement's payment waterfall. The court emphasized that parties deliberately categorized premium in a separate clause below debt service provisions, indicating lower priority. Given the entity's resolution was in final stages under an approved framework, the Authority could not terminate the concession agreement. Application was allowed. Case-Laws Companies Law Tue, 02 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750939