https://www.taxtmi.com/caselaws?id=791563 A statutory first charge created by operation of law under the Gujarat VAT Act can amount to a security interest in liquidation, so VAT dues were treated as secured, while CST dues were not because the Central Sales Tax Act did not create an equivalent first charge. Proof of that statutory charge did not depend on registration under the Companies Act or disclosure in the claim form where the liquidator had notice of the legal basis of the claim. A secured creditor that does not elect to realise the security under the Insolvency and Bankruptcy Code is treated as having relinquished it for distribution, and may share in the liquidation waterfall for the secured component. en-us Mon, 11 May 2026 00:00:00 +0530 Wed, 13 May 2026 13:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791563 A statutory first charge created by operation of law under the Gujarat VAT Act can amount to a security interest in liquidation, so VAT dues were treated as secured, while CST dues were not because the Central Sales Tax Act did not create an equivalent first charge. Proof of that statutory charge did not depend on registration under the Companies Act or disclosure in the claim form where the liquidator had notice of the legal basis of the claim. A secured creditor that does not elect to realise the security under the Insolvency and Bankruptcy Code is treated as having relinquished it for distribution, and may share in the liquidation waterfall for the secured component. Case-Laws IBC Mon, 11 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791563