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.]
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.]
Source footnotes
1 Ins. by Act 44 of 2016, s. 41 (w.e.f. 1-9-2016).आगे पढ़ें / Continue reading
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Section 1 · Short title, extent, commencement and application.Section 2 · Definitions.Section 3 · Establishment of Tribunal.Section 4 · Composition of Tribunal.Section 5 · Qualifications for appointment as Presiding Officer.Section 6 · Term of office of Presiding Officer.Section 6A · Qualifications, terms and conditions of service of Presiding Officer.Section 7 · Staff of Tribunal.India Code, Government of India. Text fetched 09 Oct 2026. Source metadata reports last modification: 2021-07-15. Check the linked official text and subsequent notifications when applying a provision.