Vinayaka Car Company Ltd (VCC) is a manufacturer of passenger cars and commercial vehicles in India. It sells the cars through single brand dealerships across different cities. The dealerships are separate for passenger

Vinayaka Car Company Ltd (VCC) is a manufacturer of passenger cars and commercial vehicles in India. It sells the cars through single brand dealerships across different cities. The dealerships are separate for passenger cars and commercial vehicles. VCC is lagging behind the competitors in the passenger car segment due to its cost structure and is losing market share for the last 3 years. With no revival in sight, the company has decided to exit the passenger car segment and notified its dealers about shutdown of passenger car manufacturing and sales in India. Further added that the service centres for passenger cars will continue its operations for the next 3 years. Karthik Cars Pvt Ltd. (KCL) is a passenger car dealer for VCC in Bangalore with an office cum showroom and no service centre. KCL has bank loans from Bank B1 and Bank B2 for ₹ 10 crore and ₹ 7 crore respectively. Both the banks have pari-passu charge on the office premise cum showroom. KCL has expressed its inability to repay its financial obligations to the bankers. One of the bankers, Bank B1 has filed an application for Insolvency Resolution Process (IRP) which is admitted by the adjudicating authority, while the other bank is still contemplating to proceed against the borrower under SARFAESI. VCC has an interest free dealership security deposit of ₹ 1.50 crore since 2010 from KCL with a right to set-off against any receivables pending from KCL towards VCC. The nephew of the promoter of KCL had given a loan of ₹ 0.50 crore to KCL in the last 3 months to pay the utility bills, pressing commitments and office expenses. VCC in its claims has demanded ₹ 3.50 crore from KCL against pending receivables. KCL has not paid wages to the tune of ₹ 0.50 crore to its workmen and statutory employer contributions to the tune of ₹ 0.20 crore. As per valuer, Rama Mani's report, approximate realizable value of office cum showroom is ₹ 12 crores. Items which are not readily relishable having not touch value has not been reckoned and hence has been ignored by the Valuer. Value of furniture and equipment is to the tune of ₹ 0.05 crore. The current receivables on books are ₹ 1.50 crore, out of which 50% is doubtful. KCL has a general-purpose current account with B1 having current balance of ₹ 0.15 crore. On the basis of the below mentioned fact answer the questions: What will be the status of VCC as a claimant for its claims against KCL ?