Secured Creditors Prevail Over State Departments including excise & revenue: HP HC

State Bank of India Vs State of H. P. & Ors. (Himachal Pradesh High Court)

Introduction: The Himachal Pradesh High Court recently addressed a crucial legal issue regarding the priority of secured creditors over state departments, including Excise and Revenue. This article provides a detailed analysis of the case between the State Bank of India and the State of H.P., shedding light on the court’s findings and implications.

Detailed Analysis:

• Background of the Case: The case revolves around M/s Arvind Casting Pvt. Ltd., which availed financial assistance from the State Bank of India (SBI). After the unit’s property was mortgaged, it became a Non-Performing Asset (NPA), leading to recovery proceedings under the SARFAESI Act.

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