Statutory Charge U/S 232 KMC Act Overrides IBC’s General Priority Mechanism; Calcutta HC Upholds Property Tax Liabilities On Auction Buyers, Dismisses Writ Petition

Calcutta HC held that statutory charges under Section 232 KMC Act override IBC’s general priority mechanism, upholding property tax liabilities on auction buyers. The court dismissed the writ petition, reaffirming that statutory dues maintain primacy over insolvency claims. This ruling clarifies the interaction between municipal tax obligations and insolvency proceedings, ensuring that statutory liabilities are enforced regardless of corporate restructuring or liquidation efforts.