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secured creditor Secured creditor means a person holding a mortgage, charge or lien on the property of the debtor or any part thereof as a security for a debt due to him from the debtor. Secured creditor includes a landlord who under any enactment for the time being in force has a charge on land for the rent of that land. A secured creditor under both the Acts has three courses open to him- (a) he may realise his security and then prove for the balance, (b) he may relinquish his security and prove for his whole debt; (c) he may state in his proof the value at which he assesses his security and prove for the balance after deducting the assessed value. The Companies Act, 1965, also follows the insolvency rules in respect of the secured creditor of a company in liquidation. |
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See Also: Translator EN-BM |