Dear all
Kindly enlighten me as to following query regarding charges under Company Law:
A Company has taken CC limits from one banker and a term loan from another banker. The CC Limit banker has first charge over all the current assets and immovable properties of the Company while the term loan lender has second charge over immovable properties.
In such situation can CC Limit banker ask for extension of its first charge for all its present and future debts (whether secured or unsecured) provided or that may be provided by the said banker to the Company, having priority over the second charge (while extending second charge in favour of the term loan banker)?
CAclubindia
