https://www.taxtmi.com/caselaws?id=790163 A statutory charge for VAT arrears created merely by operation of law was treated as insufficient, by itself, to constitute a security interest under the Insolvency and Bankruptcy Code, 2016. In liquidation, an unadmitted or time-barred tax claim could not override the Section 53 waterfall or defeat a sale of the corporate debtor's property to an auction purchaser. The court distinguished Rainbow Papers on the basis that it concerned the resolution process and an earlier regime, and relied on the later clarification to Section 3(31) that a security interest must arise from an agreement or arrangement. The attachment was therefore ordered removed, with consequential encumbrance entry directed. en-us Fri, 17 Apr 2026 00:00:00 +0530 Tue, 21 Apr 2026 08:48:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790163 A statutory charge for VAT arrears created merely by operation of law was treated as insufficient, by itself, to constitute a security interest under the Insolvency and Bankruptcy Code, 2016. In liquidation, an unadmitted or time-barred tax claim could not override the Section 53 waterfall or defeat a sale of the corporate debtor's property to an auction purchaser. The court distinguished Rainbow Papers on the basis that it concerned the resolution process and an earlier regime, and relied on the later clarification to Section 3(31) that a security interest must arise from an agreement or arrangement. The attachment was therefore ordered removed, with consequential encumbrance entry directed. Case-Laws IBC Fri, 17 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790163