In Brief
Vistra ITCL held 66.77% of JMT Auto Limited's shares as security for loans advanced to group companies of Amtek Auto Limited (the corporate debtor). When Amtek entered insolvency, Vistra sought recognition as a creditor, but was denied. The Supreme Court held that while Vistra cannot be classified as a financial creditor (following precedent), it retains all rights as a secured creditor under Sections 52 and 53 of the Insolvency Code. A resolution plan cannot dilute or override a pledge agreement or leave a secured creditor remediless. The Court required the successful resolution applicant to recognize Vistra's security interest or pay equivalent liquidation value.", <parameter name="cited_cases">[{"raw_citation": "Anuj Jain Interim Resolution Professional for Jaypee Infratech Limited vs. Axis Bank Limited", "case_name": "Anuj Jain Interim Resolution Professional for Jaypee Infratech Limited v. Axis Bank Limited", "paragraph": "5, 5.1, 5.5, 6, 8, 8.5, 9", "treatment": "distinguished"}, {"raw_citation": "Phoenix ARC Private Limited vs. Ketulbhai Ramubhai Patel", "case_name": "Phoenix ARC Private Limited v. Ketulbhai Ramubhai Patel", "paragraph": "3.5, 5, 5.2, 5.3, 5.5, 5.6, 8.5, 9", "treatment": "distinguished"}, {"raw_citation": "PTC India Financial Services Limited v. Venkateswarlu Kari and Another", "case_name": "PTC India Financial Services Limited v. Venkateswarlu Kari", "paragraph": "7.1, 7.2", "treatment": "followed"}, {"raw_citation": "Jaypee Infratech Ltd. Interim Resolution Professional v. Axis Bank Ltd., (2020) 8 SCC 401", "case_name": "Jaypee Infratech Ltd. Interim Resolution Professional v. Axis Bank Ltd.", "paragraph": "5.5, 5.6", "treatment": "referred"}]
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