The plaintiff company is engaged in the business of providing financial facilities to its clients and customers. Borrower has placed Fixed deposit receipts as security.  Income Tax Department issued notice u/s 226(3) of the Act to Bank of Baroda to hand over the Fixed deposit receipt towards tax liability of the assessee. On a suit filed by the Lender the Court held that amount had been placed in FDR by defendant no. 2 to ensure repayment of debt owed by it to plaintiff and lien had been marked on aforesaid FDR in favour of plaintiff company, plaintiff being a secured creditor in view of lien possessed by plaintiff on said FDR will have a priority over Income Tax Department, who is an unsecured creditor. Income Tax Department’s preferential right to recovery of debts over other creditors is confined only to ordinary or unsecured creditors, it would not extend to secured creditors. Therefore, plaintiff company would be entitled to amounts under said FDR.