In a recent case, the court clarified that the right to recover money through a mortgage is a Constitutional right. Priority of claims upheld.

In a recent case, the court clarified that the right to recover money through a mortgage is a Constitutional right. Priority of claims upheld. https://www.taxtmi.com/highlights?id=78508 HC addressed priority of claims among secured and unsecured creditors in liquidation. Referring to SC precedent, HC upheld first charge holder's priority over second charge holder u/s 48 of Transfer of Property Act. Despite Companies Act not specifying priorities over mortgaged assets, HC affirmed Transfer of Property Act's application. Recovery officer's report aligned with HC's order, rejecting objections. HC directed Official Liquidator to release Rs. 9.5 Crores to recovery officer for distribution to certificate holders, retaining workers' dues. Application disposed of within fifteen working days. en-us Sat, 15 Jun 2024 18:42:37 +0530 Sat, 15 Jun 2024 18:42:37 +0530 TaxTMI RSS Generator In a recent case, the court clarified that the right to recover money through a mortgage is a Constitutional right. Priority of claims upheld. https://www.taxtmi.com/highlights?id=78508 HC addressed priority of claims among secured and unsecured creditors in liquidation. Referring to SC precedent, HC upheld first charge holder's priority over second charge holder u/s 48 of Transfer of Property Act. Despite Companies Act not specifying priorities over mortgaged assets, HC affirmed Transfer of Property Act's application. Recovery officer's report aligned with HC's order, rejecting objections. HC directed Official Liquidator to release Rs. 9.5 Crores to recovery officer for distribution to certificate holders, retaining workers' dues. Application disposed of within fifteen working days. Highlights Companies Law Sat, 15 Jun 2024 18:42:37 +0530 https://www.taxtmi.com/highlights?id=78508