There has always been a matter of contention for a Committee of Creditors, Resolution Professionals, legal fraternity during Corporate Resolution Insolvency Process (CIRP), whether the dues of the Government like Income-Tax, Sales Tax, Value Added Tax etc. are secured debt and whether the Government is a secured creditor.

The National Company Law Appellate Tribunal has answered this question in affirmative in its recent𝗷𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁 𝗱𝗮𝘁𝗲𝗱 𝟳𝘁𝗵 𝗙𝗲𝗯., 𝟮𝟬𝟮𝟯 𝗶𝗻 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗔𝗽𝗽𝗲𝗮𝗹 (𝗔𝗧) (𝗜𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝘆) 𝗡𝗼. 𝟮𝟰𝟮 𝗼𝗳 𝟮𝟬𝟮𝟮 (𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗮𝗹 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝗲𝗿 𝗼𝗳 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 & 𝗔𝗻𝗿. 𝘃𝘀. 𝗔𝘀𝘀𝗮𝗺 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗜𝗻𝗱𝗶𝗮 𝗟𝘁𝗱).