States dues for tax has no preference over dues of other secured creditors

Asstt. Commercial Taxes Officer Vs Punusumi India Limited (Rajasthan High Court) Facts- The applicant-department, M/s. Punusumi India Limited, is under liquidation and the Officer Liquidator (OL) had invited claims with regard to outstanding dues against the said Company. The OL allowed a sum of Rs.3,19,351/- as preferential claim under Section 530(1) of the Companies Act, 1956 and Rs.32,32,337/- as ordinary claim under Section 529/530 of the Act of 1956. Against which the applicant-department filed a Company Application before the High Court. Conclusion- This Court finds that the claim/dues ...