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Section 31B: Priority to secured creditors.

The Recovery Of Debts And Bankruptcy Act, 1993Central Act · Act 51 of 1993

[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.]

Where this provision sits

ActThe Recovery Of Debts And Bankruptcy Act, 1993
Section31B
Marginal notePriority to secured creditors.
JurisdictionCentral
StatusIn force as published by the source
Judgments citing it1

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

  • inserted, Act 44 of 2016. Ins. by Act 44 of 2016, s. 41 (w.e.f. 1-9-2016).

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