Case Law Analysis
|Bombay High Court
SARFAESI Act | Secured Creditor with Prior CERSAI Registration Takes Priority Over GST Dues in Private Treaty Sale: Bombay HC
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.