Section 142A. Liability under Act to be first charge 

Judgments on Section 142A

• Sundaresh Bhatt vs Central Board Of Indirect Taxes And… — Supreme Court of India, 26 Aug 2022. Once the Adjudicating Authority (NCLT) approves the Liquidator's decision to sell the movable/immovable assets of the corporate debtor in liquidation by adopting a particular mode of sale, there is no provision in the…
• Bank Of Mahrashtra vs The Directorate Of Revenue… — Bombay High Court, 16 Jan 2024. The statutory first charge under Section 142A of the Customs Act, 1962 cannot impede recovery by a secured creditor under the SARFAESI Act, because Section 142A itself saves the SARFAESI Act (and the RDDBFI Act, 1993),…
• Industrial Dev.Bank Of India Through… vs Superintendent Of Central Excise And Customs — Supreme Court of India, 18 Aug 2023. Government dues under the Customs Act, even when preferential under Section 530 of the Companies Act, do not override the overriding preferential payments under Section 529A, so prior secured creditors may enforce their…
• Paschimanchal Vidyut Vitran Nigam Ltd. vs Raman Ispat Private Limited — Supreme Court of India, 17 Jul 2023. Once moratorium is imposed under Sections 14 or 33(5) of the IBC, statutory authorities such as customs have only a limited jurisdiction to assess/determine the quantum of duty and other levies and must submit their…
• Bank Of India vs Shri Rajendra Vitthal Shinde And Ors — Bombay High Court, 24 Feb 2023. Under section 142A of the Customs Act, 1962, the first charge for duty, penalty and interest under the Act is expressly subject to the SARFAESI Act, 2002 (among other statutes), so a secured creditor proceeding under…
• Sanjay Jain vs Commissioner, Central Goods And… — Punjab-Haryana High Court, 8 Oct 2020. Where a penalty under the Customs Act, 1962 was imposed prior in time to a purported transfer, the department's first charge under Section 142A prevails over a subsequent agreement to sell, even if the transferee claims…
• M/S Dharti Agro Industries Pvt. Ltd. vs The Managing Director, Pashchimanchal… — Allahabad High Court, 18 Sep 2025. Once the IBC is triggered, its Section 238 overriding effect bars recovery of the corporate debtor's dues from a liquidation auction purchaser, who cannot be denied a power connection — the creditor must realize its…
• Edelweiss Asset Reconstruction Co Ltd vs Union Of India — Gujarat High Court, 19 Apr 2018. Where an assignee of secured credit claims a statutory first charge under Section 142A of the Customs Act, 1962 read with Section 31B of the RDDB Act, 1993, the High Court may, on a prima facie case and balance of…
• Textech Indo (India) P. Ltd vs The Senior Intelligence Officer — Madras High Court, 8 Oct 2015. Where a prior sale is completed, the Department is prohibited from claiming right over the property, since the first charge created by Section 142A of the Customs Act, 1962 is expressly subject to the SARFAESI Act, 2002.
• Union Of India & vs Ishaan Overseals — Gujarat High Court, 12 Jun 2013. In a winding-up, an Official Liquidator cannot refuse to receive a creditor's belated or supplementary proof of debt and delay in lodging it will not stand in the creditor's way, but the claim can actually be considered…
• Karur Vysya Bank Limited vs State Of Gujarat — Gujarat High Court, 23 Oct 2024. A secured creditor whose charge is registered prior in time prevails over a later-created charge for State dues by virtue of Section 26E of the SARFAESI Act and Section 31B of the RDB Act, the Crown's preferential right…