In another landmark Judgement of the Hon'ble Supreme Court in " Paschimanchal Vidyut Vitran Nigam Ltd v. Raman Ispat Private Limited " has brought significant relief for creditors and financial institutions because it clarifies that government dues including Income Tax, VAT and electricity charges etc., are to be treated as operational debt and given priority in the waterfall mechanism for distribution of funds during insolvency proceedings. This means that government dues will be paid before other debts, such as financial debts. This clarification is seen as a positive step for creditors and financial institutions for several reasons-