Legal Question in Banking Law in India

Banking

Pari-Passu charge means what and how it works.

Main issue is once pari-passu is shared between two banks. one bank gets 80 % of receivables and other bank got only 20% in this case if the campany is bankrupt then the banks will have charge on the company's assets to there proportion percentage or banks need to share equally to the proportiate percentage even on earlier receivables?


Asked on 7/02/09, 8:01 am

4 Answers from Attorneys
Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

Re: Banking

Pari-Passu is often seen in venture capital term sheets, indicating that one series of equity will have the same rights and privileges as another series of equity. ('of equal step' in latin)So both the banks will charge as per their ratios in receivables.

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Answered on 7/02/09, 11:19 am
Pranav Desai PD Legal & Associates

Re: Banking

Proportionately of their share.

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Answered on 7/07/09, 5:13 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Banking

The banks share in the proportion of their respective loan share.

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Answered on 7/02/09, 11:05 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Banking

already replied

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Answered on 7/03/09, 12:50 am


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