Indian Law Lab

GUEST POST: BY AYUSHI H DANGRE When Insolvency and Admiralty proceedings are brought in the same jurisdiction, it gives rise to two situations: 1) Where in rem claimants have issued proceedings in Admiralty Court prior to the petition for winding up. 2) Where in rem claimants have issued proceedings in Admiralty Court between the presentation of a petition for winding up and the date of winding up order. It is pertinent to note at this juncture the observations of Hon’ble Courts in the case of M Krishna Shreedhar v K Shajahan 1 . The court held that in the absence of specific State Laws on the priority of maritime claim and maritime lien, the field is occupied by International Conventions. The important conventions, which require to be considered, are the International Convention on Maritime Liens and Mortgages, 1993 and the International Convention on Arrest of Ships, 1999. At the first instance, the International Convention for the Unification of Certain Rules relating t...

SHORT NOTE: The waterfall liability under section 53 of the Insolvency and Bankruptcy Code, 2016 (hereinafter ‘IBC’) places government at fifth place in order of priority. Although with the operation of Sec. 53 of the IBC, the statutory dues/government dues merely have been lowered in order of priority from the sale of the liquidation assets, whereby not abolishing the statutory dues. Simply grading down in the priority order from the sale of the liquidation assets does not impede the government’s right, as it does not extinguish the government’s claim. Therefore, it cannot be said that while placing statutory dues/government dues in the lower order of priority from the sale of the liquidation assets, impede government’s right of taxation. Statutory dues arise pursuant to a provision in the various statute. In taxing statute, the statutory dues get levied from the charging section of the respective statute. There is an enormous difference between employees, members, creditors, guar...