The case involves an application filed by Canara Bank under Section 60(5) of the IBC, 2016, seeking a directive for the Liquidator to deposit proceeds from the sale of secured assets, prioritizing Canara Bank's claim under Section 53(i)(b)(ii) of the IBC. The Corporate Debtor, Lake View Ayurvedic Resorts and Research Centre Pvt. Ltd., had a CIRP initiated against it by KSIDC, admitted on 06.11.2019. Canara Bank, holding a second charge over the Corporate Debtor's assets, filed a claim which was partially admitted. The Liquidator sold the assets, but communicated that the proceeds would fall under Section 53(e)(ii) of IBC, denying Canara Bank priority.
Lake View Ayurvedic Resorts and Research Centre Pvt. Ltd. (Corporate Debtor) obtained facilities from Canara Bank, Punalur Branch. KSIDC initiated CIRP against the Corporate Debtor, which was admitted on 06.11.2019. Canara Bank held the second charge over the Corporate Debtor's assets, including land, buildings, and machinery. KSIDC held the first charge. Canara Bank filed a claim in Form C, which was partially admitted. The Corporate Debtor was ordered to be liquidated on 15.10.2020. Canara Bank, as a Financial Creditor, filed a claim in Form D for Rs. 2,04,46,739. The Liquidator sold the assets but informed Canara Bank that its claim would be categorized under Section 53(e)(ii) of IBC, denying priority. Canara Bank argued it never relinquished its security interest.
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CIRP initiated against M/s. Lake View Ayurvedic…
Canara Bank filed a…
The case involves an application filed by Canara Bank under Section 60(5) of the IBC, 2016, seeking a directive for the Liquidator to deposit proceeds from the sale of secured assets, prioritizing Canara Bank's claim under Section 53(i)(b)(ii) of the IBC. The Corporate Debtor, Lake View Ayurvedic Resorts and Research Centre Pvt. Ltd., had a CIRP initiated against it by KSIDC, admitted on 06.11.2019. Canara Bank, holding a second charge over the Corporate Debtor's assets, filed a claim which was partially admitted. The Liquidator sold the assets, but communicated that the proceeds would fall under Section 53(e)(ii) of IBC, denying Canara Bank priority.
Lake View Ayurvedic Resorts and Research Centre Pvt. Ltd. (Corporate Debtor) obtained facilities from Canara Bank, Punalur Branch. KSIDC initiated CIRP against the Corporate Debtor, which was admitted on 06.11.2019. Canara Bank held the second charge over the Corporate Debtor's assets, including land, buildings, and machinery. KSIDC held the first charge. Canara Bank filed a claim in Form C, which was partially admitted. The Corporate Debtor was ordered to be liquidated on 15.10.2020. Canara Bank, as a Financial Creditor, filed a claim in Form D for Rs. 2,04,46,739. The Liquidator sold the assets but informed Canara Bank that its claim would be categorized under Section 53(e)(ii) of IBC, denying priority. Canara Bank argued it never relinquished its security interest.
…CIRP initiated against M/s. Lake View Ayurvedic…
Canara Bank filed a…