C.A. No. 002796 - / 2022

Under the Insolvency and Bankruptcy Code, State tax dues are not entitled to priority as crown debts and must be treated as government dues under Section 53(1)(e), subject to the waterfall mechanism of distribution of assets under Section 53. As analyzed on casestatus.in, this position is settled law and not res integra, binding all subordinate proceedings involving similar claims by State tax authorities in insolvency matters.