| COURT: | Supreme Court |
| CORAM: | Indu Malhotra J, Rohinton Fali Nariman J. |
| SECTION(S): | Insolvency and Bankruptcy Code 2016 |
| GENRE: | Domestic Tax, Other Laws |
| CATCH WORDS: | priority of dues |
| COUNSEL: | Mukul Rohatgi, Shyam Diwan |
| DATE: | August 10, 2018 (Date of pronouncement) |
| DATE: | August 23, 2018 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons. Given s. 238 of the Insolvency and Bankruptcy Code, 2016, the Code will override anything inconsistent contained in any other enactment, including the Income-tax Act | |
Given Section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income-Tax Act. We may also refer in this Connection to Dena Bank vs. Bhikhabhai Prabhudas Parekh and Co. & Ors. (2000) 5 SCC 694 and its progeny, making it clear that income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons
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