https://www.taxtmi.com/caselaws?id=754026 The Bombay HC ruled on priority of claims in company liquidation, affirming that secured creditors' rights under mortgage prevail over unsecured creditors per section 48 of Transfer of Property Act. The court rejected objections to recovery officer's report, citing SC precedent that mortgage enforcement is a constitutional property right. Despite section 529 of Companies Act not specifically addressing mortgaged asset priorities, Transfer of Property Act provisions remain applicable. The HC directed Official Liquidator to release Rs. 9.5 crores to recovery officer for distribution to certificate holders within fifteen working days after retaining workers' dues. en-us Thu, 09 May 2024 00:00:00 +0530 Fri, 14 Jun 2024 11:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754026 The Bombay HC ruled on priority of claims in company liquidation, affirming that secured creditors' rights under mortgage prevail over unsecured creditors per section 48 of Transfer of Property Act. The court rejected objections to recovery officer's report, citing SC precedent that mortgage enforcement is a constitutional property right. Despite section 529 of Companies Act not specifically addressing mortgaged asset priorities, Transfer of Property Act provisions remain applicable. The HC directed Official Liquidator to release Rs. 9.5 crores to recovery officer for distribution to certificate holders within fifteen working days after retaining workers' dues. Case-Laws Companies Law Thu, 09 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754026