https://www.taxtmi.com/caselaws?id=184859 A secured creditor's enforcement rights under SARFAESI prevail over the Income-tax Department's attachment and recovery claim where no specific statutory first charge is created in favour of the Revenue. The Court held that income-tax recovery machinery does not by itself displace secured debt priority, so the Department could not obstruct enforcement on a claim of precedence. It also held that a transfer or charge cannot be invalidated under Section 281 of the Income-tax Act unless the statutory conditions are pleaded and proved; the Revenue could not raise that point for the first time in oral argument or collaterally impeach the transaction. The secured creditor was therefore allowed to enforce its rights. en-us Tue, 27 Sep 2011 00:00:00 +0530 Thu, 21 Sep 2017 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184859 A secured creditor's enforcement rights under SARFAESI prevail over the Income-tax Department's attachment and recovery claim where no specific statutory first charge is created in favour of the Revenue. The Court held that income-tax recovery machinery does not by itself displace secured debt priority, so the Department could not obstruct enforcement on a claim of precedence. It also held that a transfer or charge cannot be invalidated under Section 281 of the Income-tax Act unless the statutory conditions are pleaded and proved; the Revenue could not raise that point for the first time in oral argument or collaterally impeach the transaction. The secured creditor was therefore allowed to enforce its rights. Case-Laws Income Tax Tue, 27 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184859