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2020 (1) TMI 1197 - HC - VAT and Sales TaxPhysical possession of mortgaged property - service of notice under Section 13(2) of the SARFAESI Act - whether the respondent No.2 could have issued notice for attachment of the immovable properties of the original borrower relying upon Section 48 of the Act, 2003? - HELD THAT:- Mr. Dave, the learned AGP, pointed out that sometime in 2013-14, the assessment proceedings were finalized and the liability towards the dues under the VAT was determined. However, such determination, on conclusion of the assessment proceedings, would not save the situation for the State because the charge of the Bank is much more prior in point of time. To put it briefly, the insertion of Section 31B of the RDB Act will give priority to the secured creditors even over the subsisting charges under the other laws on the date of the implementation of the provision. The rights of a secured creditor to realize its secured debts due and payable by sale of assets over which security interest is created would have priority over all government debts and dues including revenue and taxes due to the State Government. The order of attachment dated 11th February, 2014 at Annexure-B is hereby quashed although it has outlet its life - Petition allowed.
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