Secured debt has priority over Government dues/tax dues

Edelweiss Asset Reconstruction Co. Ltd. Vs Tax Recovery Officer (Bombay High Court) The moot issue arising herein, whether the secured debt assigned in favour of Petitioner (Edelweiss Asset Reconstruction Co. Ltd.)  has a priority over Government dues/tax dues, is, no longer res integra. The Supreme Court in the case of Bombay Stock Exchange Vs. V. S. Kandalgaonkar (supra), while considering the question whether the lien exercised under Rule 43 of the Stock Exchange can be said to be a superior right to the Income Tax dues, which may become payable by virtue of the Stock Exchange being a secu...