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The Insolvency and Bankruptcy Code, 2016 provides for a waterfall mechanism detailing the order of priority to be followed for payment of dues pursuant to the liquidation of a corporate person. However, the Code remains silent on the inter-se priorities amongst the secured creditors. While the approach seemed to have been settled by way of the guidance provided by the Insolvency Law Committee Reports on the issue of inter-se priorities under the Code, the recent landmark ruling in Technology Development Board v Anil Goel by adopting a completely opposite stance of disregarding the inter se priorities has led to the much contentious issue of inter-se priorities amongst secured creditors again taking the centre stage.

Click to read more – Senior creditor priority disregarded in liquidation waterfall