What are the rights of debenture holders?

BY PARVATHY A+ ON JULY 24, 2013 IN BUSINESS LAW, NOTES

Rights of debenture holders:-
1. 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.
2. 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.