Dues of secured creditor have preference over Crown debts: SC

Connectwell Industries Pvt. Ltd. Vs Union of India (Supreme Court)

It is trite law that, unless there is preference given to the Crown debt by a statute, the dues of a secured creditor have preference over Crown debts.

Rule 2 of Schedule II to the Act provides for a notice to be issued to the defaulter requiring him to pay the amount specified in the certificate, in default of which steps would be taken to realise them. The crucial provision for adjudication of the dispute in this case is

Please become a Premium member. If you are already a Premium member, login here to access the full content.