Question

Which statement is correct regarding the role and rights of unsecured creditors under the SARFAESI Act versus the IBC?

Q: Answer-Which statement is correct regarding the role and rights of unsecured creditors under the SARFAESI A...

SARFAESI provides no rights to unsecured creditors. Under the IBC, unsecured creditors as operational or unsecured financial creditors get a voice, can attend CoC meetings, and have a defined place in the liquidation waterfall.

A SARFAESI gives extensive voting rights to unsecured creditors, whereas IBC excludes them

B SARFAESI gives no rights to unsecured creditors, but IBC gives them a voice, a place in the liquidation priority, and an attendance right in the CoC as operational creditors

C Both laws treat secured and unsecured creditors with exactly equal priority

D Unsecured creditors can initiate SARFAESI, but cannot file applications under the IBC

E Under the IBC, unsecured creditors are paid before the costs of the insolvency process

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