1993 (8) TMI 249

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....ekharan, J. - An application by the Kerala Financial Corporation, a secured creditor in the matter of Southern Organics (P.) Limited in liquidation. The applicant preferred its claim before the liquidator for a sum of Rs. 47,02,769.40. That included interest after the winding up to the tune of Rs. 8,65,549.60 and Rs. 873.96, the amount of travelling allowance and dearness allowance paid to the no....

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....icant, since the insolvency provisions are made applicable, under section ,47 of the Provincial Insolvency Act, 1920, the applicant being a secured creditor is entitled to prove the entire debt which according to him includes interest after the adjudication also. This argument is totally unacceptable. Section 47 does not enable a secured creditor to claim interest after the date of adjudication un....

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....f the present case. The applicant is not standing outside the winding up and it is doubtful whether it can stand outside the winding up and walk away with the security after the amendment of 1985 adding the proviso to section 529 and the enactment of section 529A by which the claims of workers are treated in parity with the claims of the secured creditor. Another decision relied on by learned cou....

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....ng up petition in the case of an insolvent company. It was urged that the said case related to an unsecured creditor and so the dictum therein cannot be applied to the present case. Whether it be an unsecured creditor or a secured creditor, the insolvency proceedings do not permit payment of interest after the date of adjudication of insolvency. The applicant, as one of the secured creditors, alo....