#priority of claims

The NCLAT Chennai Bench held ESI contributions are trust assets excluded from liquidation estate under IBC Sec 36(4)(a)(i), overturning a plan paying only 1% of the claim and affirming priority for employees' statutory dues in insolvency.

Bombay High Court rules that a secured creditor's interest under SARFAESI Act, registered before MPID attachment, cannot be nullified. MPID authorities must first exhaust deposit-acquired assets before attaching other properties, reinforcing the priority of perfected security interests in insolvency proceedings.

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.