Legal Question in Banking Law in India
First paripassu charge
What is first paripassu charge?
Suppose X bank gives Rs 100/- on the security of Rs 150/- worth property and subsequently Y bank gives Rs 30/- on the security of same property on paripassu basis, when the debts are not paid, how the property of valur Rs 150/- is shared among X bank and Y bank?
Asked on 7/15/09, 2:22 pm
2 Answers from Attorneys
Pranav Desai
PD Legal & Associates
Re: First paripassu charge
in the proportion of the loan.
Answered on 7/18/09, 3:20 am
J. Radhakrishnan
independent Practice
Re: First paripassu charge
As per paripassu charge the proceeds from realisation of security will be shared in the ratio 10:3 between X and Y Bank.
Answered on 7/15/09, 8:17 pm
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