Dues of the CBIC, Department of Revenue will be paid as per the waterfall mechanism stipulated under the IBC

Last updated: 20 November 2023
Quick Summary
The Supreme Court has affirmed that dues owed to the Central Board of Indirect Taxes & Customs (CBIC), Department of Revenue, must be settled according to the waterfall mechanism outlined in Section 53 of the Insolvency and Bankruptcy Code (IBC). This ruling reinforces the established order of priority for distributing liquidation assets, ensuring fair and equitable treatment for all creditors and stakeholders in insolvency proceedings.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court in the case of Principal Commissioner of Customs v. Rajendra Prasad Tak & Ors [Civil Appeal Nos. 6432-6433 of 2023 dated October 30, 2023] reinforces the primacy of the waterfall mechanism under the Insolvency and Bankruptcy Code in Section 53 of the Insolvency and Bankruptcy Code, 2016 ("the IBC").

Citation :
Civil Appeal Nos. 6432-6433 of 2023 dated October 30, 2023

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