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2016 (9) TMI 972 - ANDHRA PRADESH HIGH COURTRecovery of dues - priority of discharge of dues - lifting/shifting the stocks of paddy bags from the rice mill premises and godown premises - Andhra Pradesh Revenue Recovery Act, 1864 - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - delivery of 8085.95 quintals of rice leaving a balance of 4007.18 quintals of rice undelivered, which is equivalent to 5892.91 quintals of paddy - demand of sum of ₹ 1,04,23,732.78 ps., representing the cost of paddy - failure to pay the demanded amount - letter addressed by to initiate proceedings under the RR Act - Section 2 of the RR Act - possession of the rice mill including stocks taken over - Held that: - first charge over the dues has primacy over the dues of the Banks, Financial Institutions and Secured Creditors. It is not in dispute that the dues payable treated as arrears of land (public) revenue. The dues claimed by Telangana State Civil Supplies Corporation are subject to the statutory charge under Section 2 of the RR Act and therefore, they have the precedence over the dues claimed by the petitioner. It is only after the satisfaction of the dues of Telangana State Civil Supplies Corporation that the petitioner can recover its dues from out of the balance sale proceeds. In the Telangana State Civil Supplies Corporation is unable to recover the dues to the full extent, from out of the sale of the balance paddy seized by it from Mill, Telangana State Civil Supplies Corporation is entitled to sell the immovable properties such as factory, building etc. It is only after the debt of Telangana State Civil Supplies Corporation is satisfied that the petitioner is entitled to recover its dues from out of the left over properties or balance sale proceeds. Petition dismissed - decided against petitioner.
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