HC allows SBI Bank to claim priority over I-T Refund credited to Defaulter company

State Bank of India Vs Union of India (Hyderabad High Court) Conclusion: Claim of SBI on income tax refund credited in the the defaulters’ bank account with it would get priority over the government dues including the service tax dues as per section 31-B of the Recovery of Debts and Bankruptcy Act, 1993 and sec. 26E of the SARFAESI Act,2002 w.e.f.1.9.2016. Held: Assessee bank in it’s banking activity had sanctioned limits of Rs.820 Crores to the M/s SEW Infrastructures Limited, Greenlands, Hyderabad along with consortium Banks. The company created a first charge by way of hypothecation of ...