When goods are not in possession of Port Authority, there is no actual lien to invoke Section 171 of Indian Contract Act, 1872 and claim of Port cannot be treated as a Secured Creditor for distribution of liquidation assets under Sec. 53 of Code – V O Chidambaranar Port Authority v. Shri Rajesh Chillale, RP of IndBharath Power Gencom Ltd. – NCLAT Chennai

Hon'ble NCLAT held that a careful reading of the Section of 171 Indian Contract Act, 1872 would show that wharfingers as the Appellant claiming itself to be a security for a general balance of account any goods bailed to them whereas in the present case, the goods are not in possession of the Appellant which is also admitted by the Appellant during the course of hearing and thus there was no actual lien to invoke Section 171 of the Act.

Related Posts:

If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

IBC-Case Laws-NCLAT
Scroll to Top