LVSR FARMS PRIVATE LIMITED Vs. THE OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) A. Introduction:`

(2.) A short, but important question arises in this Company Appeal. The question is whether a secured creditor is entitled to contractual rate of interest for the post winding -up period if surplus amount is available before such amount is distributed among the unsecured creditors?

(3.) UPON considering the claim putforth by the appellant as the assignee of the four secured creditors referred to above, the Official Liquidator has admitted the appellant's claim only to an extent of Rs. 2,66,73,817/ -. While adjudicating the claim, the Official Liquidator has allowed the principal amount as claimed by the assignee along with contractual rate of interest upto the date of winding up of the company while disallowing the claim for interest at the contractual rate for the post winding up period. The appellant filed this appeal to the extent of the Official Liquidator disallowing the claim for interest at the contractual rate for the said period.