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

Pranav Desai PD Legal & Associates

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Re: First paripassu charge

in the proportion of the loan.

Answered on 7/18/09, 3:20 am

J. Radhakrishnan independent Practice

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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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