TMI Blog2022 (5) TMI 1367X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive charge over factory land, building and plots at Ramnagar, West Bengal. The Exclusive Charge of the Appellant- Bank was also registered with the Registrar of Companies, Kolkata. The liquidation order was passed on 15.02.2021. In the liquidation proceedings, the Appellant relinquished its security with regard to secured assets. The secured assets, thus, formed the part of the liquidation assets. The liquidator sold the assets for a sum of Rs.1,68,00,000/-. The Appellant sent an e-mail on 28.10.2021 informing that the Appellant being first and exclusive charge on the security is entitled to receive the amount. The Liquidator distributed the sale proceeds on the pro-rata basis under Section 53 of the Insolvency and Bankruptcy Code, 2016 ( C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Appellant is entitled to receive the entire amount realised from its secured assets. 3. We have considered the submissions of the learned Counsel for the Appellant and perused the record. 4. 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 SC OnLine SC 409 . In the case before Hon ble Supreme Court, Appellant was Dissenting Financial Creditor and it challenged the distribution of the assets under the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me proportion and percentage as provided to the other secured financial creditors with reference to their respective admitted claims. Repeated reference on behalf of the appellant to the value of security at about INR 12 crores is wholly inapt and is rather ill-conceived. 21. The limitation on the extent of the amount receivable by a dissenting financial creditor is innate in Section 30(2)(b) of the Code and has been further exposited in the decisions aforesaid. 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 the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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