Rights of debenture holders:-
- Rights and remedies of unsecured debenture holder:-
(i) They can file a suit against the company for the principal as well as for the interest.
(ii) They can file an application to the court regarding compulsory dissolution of the company.
(iii) If the company is under the process of winding up, they can claim their principal.
- Rights and remedies of secured debenture holder:-
(i) They can file a suit against the company for the principal as well as for the interest.
(ii) They can file an application to the court regarding compulsory dissolution of the company.
(iii) If the company is under the process of winding up, the can claim their principal.
(iv) These debenture holders can file a suit against the companies for its compulsory dissolution through the debenture trustee.
(v) They can file a suit against the company for the sale of property.
(vi) It can get injunction from the court to restrict the right of the company to sell its property for redemption of the debenture.
(vii) If the trustee is so authorized, the debenture holder may appoint liquidator, through the trustee and get the charge sold for the purpose of repayment.
If the charged assets are unable to make the full payment, it can file a suit against the company for the balance payment.
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