Secured creditor will have first charge over state/ central government

Madhaviben Jitendrabhai Rupareliya Vs State of Gujarat (Gujarat High Court) Gujarat High Court held that charge in favour of secured creditor would precede over the unsecured creditor. Thus, secured creditor will have first charge over the property as against State Government (crowns debt). Facts- The core issue involved herein is related to who will have first charge over the property in question i.e. Secured Creditor or the State / Central Government (Crowns debt) on account of non-payment of dues of Sales Tax department. Conclusion- When each of the properties were purchased pursuant to an ...