M.P commercial tax Act1994
Tarun Goyal
(Querist) 02 May 2009
This query is : Resolved
The follwing is the provision of the M.P commercial tax Act1994
Sec. 53 : Tax to be first charge
Notwithstanding anything to the contrary, contained in any law for the time being in force and subject to the provisions of Section 530 of the Companies Act, 1956 (No.1 of 1956), any amount of tax and/ or penalty or interest, if any, payable by a dealer or other person under this Act shall be first charge on the property of the dealer or such person
Whether secured creditors can by pass this provision and can get their dues as first charge on the widing up of the company. Who will get the benefit of the subjection cl;ause in the act
A V Vishal
(Expert) 02 May 2009
Dear Tarun
The Act says that nothing contrary to law and as per the provisions of S.530 of the companies act the company shall be liable to pay the dues to the central and then the state government in order of preference.
Hence by passing a resolution of the secured creditors, the dues of such creditors cannot become first charge in the order of preference.
