ICICI Bank Ltd., (formerly Bank of Madura Ltd.) vs The Official Liquidator, Liquidator of Vibrant Investments and Properties Ltd. (in liquidation)

Markandey Katju, C.J.—This Civil Revision Petition has been filed against the order of the Debts Recovery Appellate Tribunal dated

27.8.2004. We have heard counsel for the parties and have perused the records.

The revision petitioner is a secured creditor. M/s. Vibrant Investments & Properties Ltd. was a company which went into liquidation and the

question is whether the claim of the petitioner will prevail over the claim of the Income Tax Department and the Karnataka Sales Tax Department.

This issue is no longer res integra in view of the decision of the Supreme Court in Dena Bank Vs. Bhikhabhai Prabhudas Parekh and Co. and

Others, where it has been held that the claim of a secured creditor will prevail over crown debts.

In view of the above, we modify the impugned judgment of the Debts Recovery Appellate Tribunal dated 27.8.2004 and direct that the claim of

the petitioner will prevail over that of the Income Tax Department and the Karnataka Sales Tax Department, but this will be subject to the

provisions of Section 529A of the Companies Act. This revision petition is disposed of accordingly. No costs. Consequently CMP Nos. 15322

and 19436 of 2004 are closed.