Three comparable creditors are owed 100,000, 200,000 and 300,000 rupees. Total established debt is 600,000, but only 120,000 is available.
A receives 20,000.
B receives 40,000.
C receives 60,000.
The claims are in a 1:2:3 ratio, so the distribution follows that ratio. This illustration assumes no separate legal priority or security right.
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Worked example: three creditors
Kitab al-Hajr: Insolvency, Interdiction and Creditors’ Rights
Three comparable creditors are owed 100,000, 200,000 and 300,000 rupees. Total established debt is 600,000, but only 120,000 is available.
A receives 20,000.
B receives 40,000.
C receives 60,000.
The claims are in a 1:2:3 ratio, so the distribution follows that ratio. This illustration assumes no separate legal priority or security right.