https://www.taxtmi.com/caselaws?id=751258 A statutory charge created by Section 13A of the Uttar Pradesh Industrial Area Development Act, 1976 over amounts payable to the development authority was treated as security by operation of law, making the authority a secured creditor under the insolvency framework. The charge attached to pre-CIRP lease rental dues once they became payable, and the later insertion of Section 13A did not affect outstanding liabilities already due. Non-registration of the charge under the Companies Act was immaterial because the security arose from statute, not a consensual instrument. Absence of recovery notices also did not negate the charge, and no inconsistency was found with Section 238 of the Insolvency and Bankruptcy Code. en-us Tue, 09 Apr 2024 00:00:00 +0530 Wed, 10 Apr 2024 10:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751258 A statutory charge created by Section 13A of the Uttar Pradesh Industrial Area Development Act, 1976 over amounts payable to the development authority was treated as security by operation of law, making the authority a secured creditor under the insolvency framework. The charge attached to pre-CIRP lease rental dues once they became payable, and the later insertion of Section 13A did not affect outstanding liabilities already due. Non-registration of the charge under the Companies Act was immaterial because the security arose from statute, not a consensual instrument. Absence of recovery notices also did not negate the charge, and no inconsistency was found with Section 238 of the Insolvency and Bankruptcy Code. Case-Laws Insolvency and Bankruptcy Tue, 09 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751258