There is no priority of charge of state or central tax upon mortgages created in favour of Bank : Sec 26E of securitisation & sec 31 (b)of RDB Act are in consonance to this object : Even sec 31 of bankruptcy code after amendment of 2019 clearly states that if resolution plan not covers the statutory dues like state central ,municipal local taxes it would be extinguished : sec31 (B) of IB code is declaratory in nature : The issue of priority in recovery of statutory dues was discussed in several cases of high courts : Supreme Court upheld the view that Banks as a secure creditor has a vested right to recover their dues from mortgaged property : In the case of Ghanshyam Mishra V EARC Ltd reported case pronounced by Supreme Court in civil appeal number 8129/2019 on dated 13/4/2021 it was held in essence that once resolution plan approved and new entity take overs the unit , no claim would be raised against new entity :
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