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2022 (5) TMI 1367 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHIDistribution of sale proceeds from liquidation estate - priority of charges over the assets - relinquishment of security interest - seeking direction to liquidator to distribute the entire sale proceeds of the liquidation estate to Punjab National Bank since the same has exclusive charge over the property of the corporate debtor which has been sold by the Liquidator - condonation of delay in filing application - HELD THAT:- The Appellant had opted to relinquish its security exercising its right under Section 52 of the Code. After it relinquished the security, the secured creditors are entitled for receiving payment as per Section 53. The issue is no more res integra in view of the judgment of the Hon’ble Supreme Court in India Resurgence ARC Private Limited vs. Amit Metaliks Limited and Anr.[2021 (6) TMI 684 - SUPREME COURT]. In the case before Hon’ble Supreme Court, Appellant was Dissenting Financial Creditor and it challenged the distribution of the assets under the Resolution Plan. The argument was raised that the Dissenting Financial Creditor was entitled to receive the payment as per their secured interest - It was held in the case that It has not been the intent of the legislature that a security interest available to a dissenting financial creditor over the assets of the corporate debtor gives him some right over and above other financial creditors so as to enforce the entire of the security interest and thereby bring about an inequitable scenario, by receiving excess amount, beyond the receivable liquidation value proposed for the same class of creditors. The issue is no more res integra and no error is committed by the Adjudicating Authority in rejecting the Application filed by the Appellant - appeal dismissed.
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