https://www.taxtmi.com/caselaws?id=352406 A statutory priority given to secured creditors under the amended recovery and securitisation framework prevails over tax recovery claims, including garnishee action under section 226(3) of the Income-tax Act, where the notice targets secured assets or monies held for the debtor. The later amendment, reinforced by a non obstante clause, was applied to give the secured creditor precedence over Government dues such as taxes, cesses and rates, and this priority was treated as governing pending disputes as well. On that basis, the garnishee notice could not be enforced against the secured creditor bank and was set aside. en-us Thu, 30 Nov 2017 00:00:00 +0530 Wed, 13 Dec 2017 17:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=352406 A statutory priority given to secured creditors under the amended recovery and securitisation framework prevails over tax recovery claims, including garnishee action under section 226(3) of the Income-tax Act, where the notice targets secured assets or monies held for the debtor. The later amendment, reinforced by a non obstante clause, was applied to give the secured creditor precedence over Government dues such as taxes, cesses and rates, and this priority was treated as governing pending disputes as well. On that basis, the garnishee notice could not be enforced against the secured creditor bank and was set aside. Case-Laws Income Tax Thu, 30 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=352406