https://www.taxtmi.com/caselaws?id=163966 Sales tax arrears under section 24 of the Tamil Nadu General Sales Tax Act, 1959 do not automatically override a secured creditor's rights under the SARFAESI Act. The stated principle is that governmental dues may have priority over unsecured debts, but they do not displace a valid secured debt unless the statute expressly creates a first charge that prevails over secured interests. Where the bank has a valid security interest and enforces it by SARFAESI measures, the State's recovery claim cannot defeat the secured asset already sold by the bank. en-us Thu, 16 Jul 2009 00:00:00 +0530 Wed, 05 Nov 2014 14:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=163966 Sales tax arrears under section 24 of the Tamil Nadu General Sales Tax Act, 1959 do not automatically override a secured creditor's rights under the SARFAESI Act. The stated principle is that governmental dues may have priority over unsecured debts, but they do not displace a valid secured debt unless the statute expressly creates a first charge that prevails over secured interests. Where the bank has a valid security interest and enforces it by SARFAESI measures, the State's recovery claim cannot defeat the secured asset already sold by the bank. Case-Laws VAT and Sales Tax Thu, 16 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=163966