company law
tamilarasibabu
(Querist) 06 September 2008
This query is : Resolved
In Merger, how far unsecured creditors rights are protected? Before the approval of scheme , the court whether has to give notice / convey metting for the unsecured creditors? how objection can be raised by the unsecured creditors , if they go unnoticed with resp to the merger?
tamilarasibabu
(Querist) 06 September 2008
pls clarify the query with proper citation
ESTHERPRIYA
(Expert) 07 September 2008
Sir unsecured creditors rights are protected by courts by filing a petition before the Hon'ble High Court where the sanction of the scheme is filed and you can bring your claim as a right to light before the court. But you have a last claim one. After satisfaction of employees claims, bank loans and secured creditors alone your claim will be considered as if any thing remains you will surely get in case of winding up or liquidation. But in case of scheme you can ask and submit your claim before the court with a prayer to take over your cliam by the transferor company. This is the general principle followed but with respect to case laws i dont have if i could get it on this point i will render to you.
