https://www.taxtmi.com/caselaws?id=101820 The court held that income-tax claims do not have priority over secured creditors and workmen's dues in a company's liquidation. Canara Bank was permitted to appropriate Rs. 75,00,000 from sale proceeds towards its claims, subject to reopening if insufficient. A dividend of 27 paise in the rupee was sanctioned for creditors, with Rs. 27,00,000 set aside for capital gains tax. Former employees' claims were deferred pending resolution of tax issues. The court affirmed the priority of secured creditors' mortgage rights over income-tax claims and emphasized the importance of section 529A in protecting creditors' rights. The Official Liquidator was directed to declare further dividends to workmen and Canara Bank under section 529A. en-us Tue, 07 Nov 1989 00:00:00 +0530 Sat, 11 Feb 2012 12:19:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101820 The court held that income-tax claims do not have priority over secured creditors and workmen's dues in a company's liquidation. Canara Bank was permitted to appropriate Rs. 75,00,000 from sale proceeds towards its claims, subject to reopening if insufficient. A dividend of 27 paise in the rupee was sanctioned for creditors, with Rs. 27,00,000 set aside for capital gains tax. Former employees' claims were deferred pending resolution of tax issues. The court affirmed the priority of secured creditors' mortgage rights over income-tax claims and emphasized the importance of section 529A in protecting creditors' rights. The Official Liquidator was directed to declare further dividends to workmen and Canara Bank under section 529A. Case-Laws Companies Law Tue, 07 Nov 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101820