https://www.taxtmi.com/caselaws?id=283485 Section 31B gives secured creditors priority to realise secured debt by sale of the secured asset, with a non obstante clause overriding inconsistent laws and extending over Government dues, taxes, cesses and rates. On that basis, the secured creditor's right prevailed over State sales tax dues and other government claims. Although section 33 of the Madhya Pradesh VAT Act, 2002 treats tax as a first charge and contemplates limited forbearance where a bank or financial institution enforces its security, the later central amendment was held to override that recovery mechanism. The State was therefore not permitted to auction the mortgaged property, and the impugned proclamation was quashed. en-us Wed, 31 Jan 2018 00:00:00 +0530 Sat, 01 Jan 2022 18:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283485 Section 31B gives secured creditors priority to realise secured debt by sale of the secured asset, with a non obstante clause overriding inconsistent laws and extending over Government dues, taxes, cesses and rates. On that basis, the secured creditor's right prevailed over State sales tax dues and other government claims. Although section 33 of the Madhya Pradesh VAT Act, 2002 treats tax as a first charge and contemplates limited forbearance where a bank or financial institution enforces its security, the later central amendment was held to override that recovery mechanism. The State was therefore not permitted to auction the mortgaged property, and the impugned proclamation was quashed. Case-Laws VAT and Sales Tax Wed, 31 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283485