S. RAVINDRA BHAT, J.

1. The State of M.P. [hereafter “the State”] appeals against a judgment and order of the Company Judge whereby its claim to be a secured creditor (of the revenue) was declined. In other words, the appellant State argued that it had an overriding first charge over and above the claims of all other secured creditors in the winding-up proceedings.

2. The facts are not in dispute. Two companies, i.e. M/s. Varun Agro Proteins Ltd. and M/s. Consolidated Steel and Alloys Ltd. (hereafter collectively referred to as “the companies”) are under liquidation and were ordered to be wound-up. In the course of winding-up proceedings, the State pressed its claims, contending that Sales Tax dues were outstanding for the period 1980 to 31.03.1994. Concededly, the Official Liquidator [hereafter “OL”] held that the amounts as claimed were due and that the assessment orders remained outstanding. She, however, rejected the State’s claim as overriding preferential creditor and said that its demand could be recovered in terms of Section 530 of the Companies Act, 1956 (hereafter “the 1956 Act”). The State appealed, relying upon Section 33-C of the M.P. General Sales Tax Act, 195