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2009 (2) TMI 470 - SC - Companies LawWinding up - Overriding preferential payments - Dues in relation to the Municipal Tax - Held that:- Appeal allowed. Dues of the Municipality would also not even otherwise come within the purview of the crown debt. Even a crown debt could be discharged only after the secured creditors stand discharged. Once the property is sold, the assets of the company are required to be distributed to the creditors in order of preference. As the respondent-Municipality was not a secured creditor, the impugned Judgment cannot be sustained.
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