The National Company Law Appellate Tribunal (NCLAT), Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Mr Barun Mitra and Mr Arun Baroka (Technical Members) has dismissed an appeal and held that distribution to Secured Creditor must be made as per admitted claim and not as per Security interest over assets of the Corporate Debtor. The Bench further observed that a dissenting financial creditor is entitled to the liquidation value of his debt and the distribution among creditors is determined by the commercial wisdom of the Committee of Creditors (CoC).
Background Facts
On 30.12.2020, the Corporate Insolvency Resolution Process (CIRP) against BKM Industries Limited (Corporate Debtor) was initiated in an Application filed und…
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