BankDRT maha debate - Do we need Official Liquidators ?
Manager
A recent Supreme Court judgment on the distribution of proceeds amongst
various claimants against a company under liquidation has upheld the
right of the secured creditor ( read Bankers) to the amount realized by
the sale of the securities to the extent of their claims. Even
intersee secured creditors, the priority of distribution of proceeds is
to be maintained in the same hierarchical manner as was the charge
against the property sold.
As we all know, in most cases, a company under liquidation can rarely
meet the entire liabilities of its secured creditors leave alone the
question of claims of unsecured creditors. Since it is the Recovery
Officer of the Debts Recovery Tribunal who handles distribution of
proceeds amongst secured creditors, would it not be better if the work
is done by the Recovery Officer than the official liquidators? A
Recovery officer works much more faster and at a lesser cost.
To join the maha debate on the site, use the following link :
http://www.bankdrt.com/nf/debate/index.php
To read the judgment of the Supreme Court, use the following link :
http://www.bankdrt.com/nf/judgements/describe.php?id=D1020060428
To read the article on the subject, use the following link :
http://www.bankdrt.com/nf/news/read_full_news.php?id=N00020060531001
To post another article on the same subject use the following link :
http://www.bankdrt.com/nf/debate/suggest/suggest.php