The order goes against the grain of insolvency law in India, which gives employees and financial creditors priority over statutory or government dues. The core issue that needs settling is if secured statutory dues such as unpaid taxes should be treated in the manner of the financial creditors’ secured claims. The Rainbow Papers judgement, however, puts statutory dues at par with those of secured creditors. The order goes against the grain of insolvency law in India, which gives employees and financial creditors priority over statutory or government dues. The Rainbow Papers judgement, however, puts statutory dues at par with those of secured creditors.

Source: Indian Express November 08, 2023 12:33 UTC