358. Rights and duties of secured creditors

seize, attach and realise, issue execution against or appoint a receiver in respect of property subject to a charge, if entitled to do so;

value the property subject to the charge and claim in the liquidation—

as a secured creditor for the amount of his claim, up to the value of the security; and

as an unsecured creditor for the balance due, if any; or

surrender the charge to the liquidator for the general benefit of creditors, and claim in the liquidation as an unsecured creditor for the whole debt.

may claim as an unsecured creditor for any balance due after deducting the net amount realised;

shall account to the liquidator for any surplus remaining from the net amount realised after satisfaction of the debt, including interest payable in respect of that debt up to the time of its satisfaction and after making any proper payments to the holder of any other charge over the property subject to the charge.

contain full particulars of the valuation and claim;

contain full particulars of the charge including the date on which it was given; and

identify any documents that substantiate the claim and the charge, and the provisions of sections 359, 360 and 362 shall apply to any claim as a secured creditor.

require production of any document referred to in paragraph (c) of subsection (4); and

require a claim under subsection (4) to be verified by affidavit.

accept the valuation and claim; or

reject the valuation and claim in whole or in part, but—

where a valuation and claim is rejected in whole or in part, the creditor may make a revised valuation and claim within ten working days of receiving notice of the rejection; and

the liquidator may if he subsequently considers that a valuation and claim was wrongly rejected in whole or in part, revoke or amend that decision.

accepts a valuation and claim under paragraph (a)

accepts a revised valuation and claim under sub-paragraph (i) of paragraph (b) of subsection (6); or

accepts a valuation and claim on revoking or amending a decision to reject a claim under sub-paragraph (ii) of paragraph (b) of subsection (6), the liquidator shall unless the secured creditor has realised the property, redeem the security on payment of the amount of the claim or the assessed value, whichever is the less.

to elect which of the powers referred to in subsection (1) the creditor whishes to exercise; and

if the creditor elects to exercise the power referred to in paragraph (b) or paragraph (c) of that subsection, to exercise the power within that period.

withdraw the surrender and rely on the charge; or

submit a new claim under this section.

makes or authourises the making of a claim under subsection (4) that is false or misleading in a material particular knowing it to be false or misleading; or

omits or authorises the omission from a claim under subsection (4) of any matter knowing that the omission makes the claim false or misleading in a material particular, shall be guilty of an offence and be liable on conviction to a fine not exceeding one million rupees or to a term of imprisonment not exceeding five years or to both such fine and imprisonment.