Topic
CERSAI registration is the mandatory recording of security interests in movable and immovable assets under the SARFAESI Act to establish priority over other claimants in India.
Bombay HC rules that secured creditors under SARFAESI Act retain priority over tax dues if tax authorities fail to register their charge with CERSAI, affirming banks' rights in asset recovery disputes. Decision applies even to pre-2020 tax attachments, citing Jalgaon Janta Sahakari Bank precedent.
The Bombay High Court has ruled that a secured creditor who registered its interest with CERSAI before GST dues arose is entitled to priority over tax claims, even when the asset is sold via private treaty after failed auctions. This clarifies that GST authorities cannot impose charges on property already encumbered under SARFAESI, reinforcing the enforceability of secured lending rights in distressed asset recovery.
Bombay High Court rules that secured creditors under the SARFAESI Act hold priority over state tax dues arising after 20 January 2020, reinforcing CERSAI registration as the determining factor. The judgment clarifies that post-amendment tax claims do not override secured interests, impacting insolvency and recovery proceedings for banks and financial institutions.
Bombay High Court holds that secured creditors with prior CERSAI registration enjoy priority over state tax claims, reinforcing SARFAESI Act's non-obstante clause.
Bombay High Court holds that prior registered security interest under SARFAESI Act overrides GST recovery notices, affirming priority of secured creditors.
Bombay High Court holds that secured creditors with prior CERSAI registration enjoy priority over state tax dues under SARFAESI Act, reinforcing statutory supremacy of secured interests.