https://www.taxtmi.com/caselaws?id=106512 Preferential payment priority under the Companies Act gives workmen's dues and specified secured creditor debts precedence over other claims, so tax liabilities arising from sale of charged assets (including capital gains, advance tax and additional tax under assessment procedures) are subordinated and cannot be satisfied from those sale proceeds until such preferential claims are paid in full. The non obstante provision effectuates this statutory subordination and preserves secured creditors' rights and winding-up costs; where assets are insufficient, preferential claims abate proportionately, delaying collection of tax demands from charged asset realizations. en-us Fri, 11 Oct 2002 00:00:00 +0530 Wed, 14 Mar 2012 15:26:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106512 Preferential payment priority under the Companies Act gives workmen's dues and specified secured creditor debts precedence over other claims, so tax liabilities arising from sale of charged assets (including capital gains, advance tax and additional tax under assessment procedures) are subordinated and cannot be satisfied from those sale proceeds until such preferential claims are paid in full. The non obstante provision effectuates this statutory subordination and preserves secured creditors' rights and winding-up costs; where assets are insufficient, preferential claims abate proportionately, delaying collection of tax demands from charged asset realizations. Case-Laws Companies Law Fri, 11 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106512