Lawgist12Provisions in relation to secured creditors
(1) The secured creditors of the prior allottees which had any security interest in any part of the land or mine infrastructure of a Schedule I coal mine shall be entitled to—
(a) continue with such facility agreements and security interest with the prior allottee if such prior allottee is a successful bidder or allottee; and
(b) in the event that the prior allottee is not a successful bidder or allottee, then the security interest of such secured creditor shall only be satisfied out of the compensation payable to such prior allottee, to the extent determined in accordance with such rules as may be prescribed and the outstanding debt shall be recoverable from the prior allottee.
(2) The Central Government shall, taking into consideration the provisions contained in section 9, prescribe the manner in which the secured creditor shall be paid out of the compensation in respect of any prior allottee.
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- 10 Utilisation of movable property used in coal mining operations
- 11 Discharge or adoption of third party contracts with prior allottees
- 12 Provisions in relation to secured creditors
- 13 Void alienations and permitted security interests
- 14 Liabilities of prior allottees
- 15 Commissioner of payments to be appointed and his powers
- 16 Valuation of compensation for payment to prior allottee
