Liquidation overrides revenue attachment where the authority has filed its claim, and the attachment may be removed.

Attachment over a corporate debtor's property under the Tamil Nadu Revenue Recovery Act, 1864 was held removable in liquidation under the Insolvency and Bankruptcy Code, 2016 because the attaching authority had already lodged its claim with the liquidator. The tribunal reasoned that sale of the asset through the liquidation process would serve the same recovery objective, and that the attachment did not confer a right to insist on enforcement outside the insolvency framework. Section 238 of the IBC was treated as overriding inconsistent recovery ures, and the authority's reliance on priority of dues and secured creditor status did not justify retaining the attachment. The direction to remove the attachment was upheld.

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Issues: Whether the attachment created under the Tamil Nadu Revenue Recovery Act, 1864 over the corporate debtor's property could be lifted during liquidation under the Insolvency and Bankruptcy Code, 2016, when the attaching authority had already lodged its claim before the liquidator.

Analysis: The claim of the attaching authority was already part of the liquidation process. Lifting the attachment would facilitate sale of the asset and distribution of proceeds through the liquidation framework, which serves the same recovery objective underlying the attachment. The tribunal treated the attachment as not conferring a right to insist on continued enforcement outside the liquidation regime, particularly in view of the overriding effect of Section 238 of the Insolvency and Bankruptcy Code, 2016. The authority's reliance on priority of dues and secured creditor status did not justify retaining the attachment once the claim had been submitted for consideration in liquidation.

Conclusion: The attachment was validly directed to be removed, and the challenge to that direction failed.

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