Supreme Court Held That EPF Dues Have Priority Over Secured Creditors Under SARFAESI Act

The Supreme Court through its judgement dated 20.11.2025 in Jalgaon District Central Coop. Bank Ltd. v. State of Maharashtra and Ors.¹ held that dues payable under the EPF Act hold priority over the debts due to a secured creditor under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI Act").

The Supreme Court held that when there are two enactments conferring priority in satisfaction of a debt coming under the respective enactments, by the virtue of a non-obstante clause overriding the provisions of any law in force at that time, the time in which the statute was enacted or the provision was incorporated, assumes significance and the provision latter in time would prevail. However, if there is a first charge statutorily created, dehors the non obstante clause conferring priority over other debts, the statutory charge would prevail.