SARFAESI Act & RDB Act Prevail Over Section 24 of TNGST Act: Madras HC

Madras High Court ruled that the SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) and the RDB Act (Recovery of Debts Due to Banks and Financial Institutions Act) prevail over a section of the TNGST Act (Tamil Nadu Goods and Services Tax Act). The court addressed the issue of priority of laws in the context of recovery of dues by financial institutions. By holding that the special laws dealing with debt recovery have precedence over the state's GST law in certain matters, the ruling clarifies the legal framework for secured creditors' rights.