Bombay High Court To Adjudicate Whether Dues Of Msmes Take Precedence Over Secured Dues
Date
10/10/2024 2:10:53 PM
(MENAFN- KNN India)
Mumbai, Oct 10 (KNN) The Bombay High Court has postponed a decision on an application seeking enhanced interest payments in a complex liquidation case involving Shri RAM Urban Infrastructure Limited.
Justice Abhay Ahuja heard an interim application filed by A. Navinchandra Steels Pvt. Ltd., which sought directions for Indiabulls housing Finance Limited to pay interest at three times the bank rate under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).
The case has taken an unusual turn, as the original liquidation proceedings have already been transferred to the National Company Law Tribunal (NCLT).
Both the Official Liquidator and counsel for Indiabulls Housing Finance argued that the High Court may no longer be the appropriate forum for this application.
Despite suggestions to withdraw the application and file it with the NCLT, the applicant's counsel, Mathew Nedumpara, insisted on pursuing the matter in the High Court.
He argued that provisions of the MSMED Act override other laws, including the SARFAESI Act, and should apply to the interest granted in a 2015 decree.
Justice Ahuja has ordered the Official Liquidator and Indiabulls Housing Finance to file reply affidavits within four weeks.
This case highlights the complex interplay between various laws governing corporate liquidation and MSME protections in India's evolving legal landscape.
(KNN Bureau)
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