Section 26E of the SARFAESI Act (inserted by the 2016 Amendment) confers a special status on registered secured creditors regarding priority of debt payment. What priority does Section 26E grant?

Section 26E of SARFAESI (inserted by Act 44 of 2016, w.e.f. 24-1-2020) provides a sweeping priority for registered secured creditors: after registration of security interest, debts due to any secured creditor shall be paid in priority over all other debts AND all revenues, taxes, cesses and other rates payable to the Central Government, State Government or local authority. This is a landmark provision giving banks priority over government tax claims. However, the Explanation to Section 26E clarifies that this priority is subject to the Insolvency and Bankruptcy Code, 2016 in cases where insolvency/bankruptcy proceedings are pending.