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2014 (4) TMI 980 - DELHI HIGH COURTCharge over secured debt - Held that:- The amounts available with the company have to be disbursed among the secured creditors on the basis of the amounts outstanding and payable by the company in liquidation to the secured creditors. In this case, while it may be correct that the sum of Rs.104 lakhs ought to have been considered as debt outstanding towards the appellant bank, it cannot be ignored that in addition to the amount admitted as payable to other secured creditors, the other secured creditors would also be entitled to claim interest up to the date of winding up of the company. The Official Liquidator, in order to simplify the process, adopted the criteria of only taking into account the principal amount payable to all secured creditors as on the date of appointment of a Provisional Liquidator in order to determine the ratio in which the available funds could be disbursed. This method was adopted, apparently, for the reason that the funds available with the Official Liquidator were less than the principal amount payable to the secured creditors. The representative of the Central Bank had agreed with this methodology and confirmed the amount of principal outstanding. The other secured creditors have accepted and acted on the basis of the unanimous decision that only the principal amount would be considered by the Official Liquidator and the appellant is now estopped from challenging the same. In view of the fact that the representative of the appellant bank had agreed with the criteria adopted by the Official Liquidator, I find no reason to entertain the present appeal. The Official Liquidator exercises quasi judicial functions and the appellant cannot be permitted to resile from the concessions made before the Official Liquidator in discharge of his functions - Decided against appellant.
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