Two critical aspects of the casing wall flow structure in a subsonic axial flow compressor are studied in this paper: flow mechanism leading to stalling at different stagger angle configurations; and the effect of tip leakage flows on these flow phenomena. In some of the previous works, casing wall flow instabilities similar to the ones discussed in the present paper were reported, typically for high stagger angle rotor designs. However under what conditions flow tends to take such shapes were not discussed in detail. This work attempts to address this through a detailed numerical study on unswept and forward swept rotors, for different stagger angle settings, and for varied levels of rotor tip gaps. Three candidate rotors (unswept, 20° true swept, 20° axially swept) are studied with three tip clearances (0.0%, 0.7%, and 2.7% of the blade chord) for three stagger angle changes (0°, +3° and +5°). Stagger angle is found to have significant effect on suction surface flow separations. Tip clearance is observed to be critical on the inception of casing wall flow instabilities, especially at higher stagger angles. Hub endwall flow structure and the downstream flow evolution are also discussed in the paper.