Case Law Analysis
|National Company Law Appellate Tribunal
Section 53 IBC | State Tax Dues Without Security Interest Rank Below Secured Creditors in Liquidation: NCLAT
The NCLAT has ruled that unsecured state tax dues, including Haryana VAT, cannot claim priority as secured creditors under Section 53 of the IBC merely by virtue of statutory charge - only creditors with actual security interest qualify. This clarifies the hierarchy in liquidation distributions and impacts all state revenue departments seeking recovery from insolvent corporate estates.