Dues Of Secured Creditor Have Preference Over Crown Debts Unless Otherwise Provided By Statute: Gujarat High Court

[13 April 2022] The Bench comprising Justice JB Pardiwala and Justice Nisha Thakore was hearing a writ petition filed by a secured creditor, aggrieved by a letter issued by the Sub-registrar, imposing charges and encumbrances over the secured assets.
The Gujarat High Court held that “Once any immovable property is mortgaged / hypothecated towards secured creditors then having regard to the provisions contained in Section 2(zc) to (zf) of the SARFAESI Act, 2002 read with the provisions contained in Section 13 of the SARFAESI Act, 2002, the secured creditor will have the first charge on the secured assets”.