M/s.Jayaraman T. (Firm) v. S.V.S. Kannan and Another
Case brief
What is this about?
This application, filed by an assignee of a creditor in an insolvency case, was allowed. The court permitted the sale of mortgaged properties only after revaluation to fix a reserve price, ensuring the estate is maximized for creditors. The surplus sale proceeds must be remitted to the Official Assignee.
What the court decided
A.No.158 of 2022 in I.P.No.51 of 2014
SENTHILKUMAR RAMAMOORTHY J.
This application is presented by an assignee of the creditor of the insolvents. The said assignee states that the loan facilities extended to the insolvents were secured by a mortgage over the immovable assets described in the schedule to the Judge's summons.
- The applicant seeks permission to sell the mortgaged properties, appropriate the amounts due and payable to the applicant from the sale proceeds and pay the surplus, if any, to the Official Assignee.
- The insolvents are represented by counsel. Learned counsel for the insolvents submits, on instructions, that the insolvents have no say in the matter since the estate is already in the administration of the Official Assignee of this Court.
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- The Official Assignee states that the immovable properties
were valued in the year 2015. Consequently, it is submitted that the value of the assets would have appreciated significantly over the last seven years. The Official Assignee submits that the assets should be subject to revaluation so as to ensure that the value of the estate is maximised for the benefit of body of creditors. Learned counsel for the applicant submits that the properties would be revalued and the revaluation report would be submitted to the Official Assignee before proceeding further.
Issues for consideration
3 issues framed by the court
Whether permit the assignee of the creditor to sell mortgaged properties in an insolvency estate?
Whether requires the mortgaged assets to be revalued prior to the sale?
Whether permit appropriation of proceeds to the creditor with surplus remitted to Official Assignee?
Parties & counsel
- applicant
Assignee of the creditor
- respondent
Insolvents
- other
Official Assignee
Coram
Case details
As recorded by the court registry
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