2023 (12) TMI 1016

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.... - -<br>Insolvency & Bankruptcy<br>[ Justice Rakesh Kumar Jain ] Member ( Judicial ) And [ ShreeshaMerla ] Member ( Technical ) For Appellant : Mr. P. Ulaganathan, Adv JUDGMENT Per : Justice Rakesh Kumar Jain : This appeal is directed against the order dated 12.10.2023 by which an application filed under Section 42 of the Insolvency and Bankruptcy Code, 2016 (in short 'Code') by the Ap....

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....ntract Act, 1872 (in short 'Act') the Appellant is entitled to be considered as secured creditor whereas the liquidator vide its email dated 21.06.2023 responded that the Corporate Debtor has been sold as going concern and the sale proceeds have been distributed to the stakeholders in accordance with the provisions of Section 53 of the Code and further stated that he has filed an application befor....

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....hould have been included in the list of stakeholders for the purpose of distribution in terms of Section 53 of the Code. Counsel for the Appellant has vehemently argued that the Adjudicating Authority erred in its appreciation of the facts, however, on our pointed question as to how Section 171 would apply especially when there is no lien of the Appellant on the goods as a bailee because the posse....

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....ans an interest or lien created on the property or asset of any person or any of its undertakings or both as the case may be as security and includes a mortgage. In the present case, the Appellant has relied upon Section 171 of the Act with is reproduced as under: - "171. General lien of bankers, factors, wharfingers, attorneys and policy-brokers.-Bankers, factors, wharfingers, attorneys ....