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2013 (1) TMI 445 - HC - Companies LawWinding up - Whether only the secured creditors having the first charge should be taken into consideration while determining ratio contemplated under sections 529 and 529A and not the secured creditors having the second charge - Held that:- No classification of secured creditors on basis of charge as Section 529(1) provides for, 'the respective rights of secured and unsecured creditors……'. It does not classify the secured creditors on the basis of the first chargeholder or the second chargeholder or so on. Similarly, in proviso to clause (c) of sub-section (1) of section 529, the words used are, 'security of every secured creditor….' Meaning thereby the law does not make any distinction between these secured creditors on the basis of their holding charge being the first charge or the second charge or so on. Similar is the position so far as section 529A is concerned as clause (b) of sub-section (1) of section 529A states that the words used 'debts due to secured creditors….' mean that the law does not draw any distinction between the secured creditors. Thus law does not make any distinction between secured creditors on basis of their holding charge being first charge or second charge or so on for purpose of sections 529 and 529A.
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