Lawgist31BPriority to secured creditors
1[31B. Priority to secured creditors.-- Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority.
Explanation.-- For the purposes of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code.]
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1 Ins. by Act 44 of 2016, s. 41 (w.e.f. 1-9-2016).
- 31 Transfer of pending cases
- 31A Power of Tribunal to issue certificate of recovery in case of decree or order
- 31B Priority to secured creditors
- 32 Chairperson, Presiding Officer and staff of Appellate Tribunal and Tribunal to be public servants
- 33 Protection of action taken in good faith
- 34 Act to have overriding effect
- 35 Power to remove difficulties
- 36 Power to make rules
- 37 Repeal and saving
