https://www.taxtmi.com/caselaws?id=291753 Government tax dues do not become secured debt merely because a statutory first charge is asserted under state sales-tax law; under the Insolvency and Bankruptcy Code, the liquidation waterfall in Section 53, read with the overriding effect of Section 238, governs priority. A statutory attachment over corporate debtor immovable property cannot continue after a liquidation sale to an auction purchaser who has paid full consideration through the insolvency process, and the asset must be conveyed free of the encumbrance. The tax authority's claim therefore ranks as government dues, not a secured creditor claim, and the purchaser's title and possession are protected. en-us Wed, 18 Dec 2019 00:00:00 +0530 Tue, 24 Nov 2020 09:38:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291753 Government tax dues do not become secured debt merely because a statutory first charge is asserted under state sales-tax law; under the Insolvency and Bankruptcy Code, the liquidation waterfall in Section 53, read with the overriding effect of Section 238, governs priority. A statutory attachment over corporate debtor immovable property cannot continue after a liquidation sale to an auction purchaser who has paid full consideration through the insolvency process, and the asset must be conveyed free of the encumbrance. The tax authority's claim therefore ranks as government dues, not a secured creditor claim, and the purchaser's title and possession are protected. Case-Laws Insolvency and Bankruptcy Wed, 18 Dec 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291753