https://www.taxtmi.com/caselaws?id=339984 Where a borrower company is in liquidation, Section 529A of the Companies Act gives overriding preferential treatment to workmen's dues and secured creditors ranking pari passu with them, so a secured creditor enforcing security under SARFAESI may realise the secured asset outside the winding up and take priority over the State's sales tax claim under the MVAT Act. The general position that SARFAESI does not itself create a first charge, and that State first-charge provisions ordinarily prevail, was distinguished on the facts of liquidation. The later insertion of Section 26-E of SARFAESI was noted as statutory recognition of secured creditor priority, and the recovery notices were held unsustainable. en-us Tue, 07 Mar 2017 00:00:00 +0530 Thu, 22 Mar 2018 11:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339984 Where a borrower company is in liquidation, Section 529A of the Companies Act gives overriding preferential treatment to workmen's dues and secured creditors ranking pari passu with them, so a secured creditor enforcing security under SARFAESI may realise the secured asset outside the winding up and take priority over the State's sales tax claim under the MVAT Act. The general position that SARFAESI does not itself create a first charge, and that State first-charge provisions ordinarily prevail, was distinguished on the facts of liquidation. The later insertion of Section 26-E of SARFAESI was noted as statutory recognition of secured creditor priority, and the recovery notices were held unsustainable. Case-Laws VAT and Sales Tax Tue, 07 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339984