Secured Creditors' Priority Limited to Security Interest per Section 53(1)(b)(ii) of Insolvency and Bankruptcy Code.

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Full Text of the Document

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....Distribution of proceeds of Resolution Plan - Secured creditors - The conclusion of the committee is that the priority under Section 53(1)(b)(ii) shall be only to the extent of security interest of the secured creditor. The secured creditor cannot claim priority under Section 53(1)(b)(ii) of the whole debt where only part of the debt is secured, the above report of the Committee in no manner helps the appellant to support the submission. - AT....