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2021 (1) TMI 1118 - HC - VAT and Sales TaxRegistration of sale certificate - petitioner Bank submitted that the provisions under the SARFAESI Act will have primacy over the proceedings in an Arbitration Tribunal - HELD THAT:- Division Bench of this Court, in which Hon'ble Mr.Justice M.M.SUNDRESH is a party, in M/S. AACHI MASALA FOODS PVT. LTD. VERSUS M/S. EDELWISS ASSETS RECONSTRUCTION CO. LTD., M/S. JAI BHAVANI STEELS ENTERPRISES PVT. LTD., THE TAX RECOVERY OFFICER INCOME TAX DEPARTMENT, GOVT. OF INDIA, THE ASSISTANT COMMISSIONER COMMERCIAL TAX DEPARTMENT, THE ASSISTANT COMMISSIONER OF CUSTOMS BONDS, THE SUB-REGISTRAR [2020 (10) TMI 150 - MADRAS HIGH COURT] was pleased to hold that the proceedings under the SARFAESI Act would have primacy, especially in a case where the mortgage in favour of the Bank was earlier. In the case on hand also, the registered mortgage was admittedly prior. The 9th respondent in W.P.(MD)No.6976 of 2020 / 8th respondent in W.P.(MD)No. 1101 of 2021 sought for an attachment in an arbitration proceedings, in which, the petitioners Bank was obviously not a party, as the transaction has got nothing to do with it. The said order was also subsequent to the mortgage created in favour of the petitioner. Now, a third party right has also been created through the sale certificate issued in favour of the auction purchasers. If the 1st respondent raise a contention that in view of the recording of the attachment order by it already, the subsequent sale deed cannot be registered, then the very act of recording the said interim order of attachment passed by the Tribunal itself ought not to have been done, as there was a subsisting mortgage on that date. The petitioner Bank cannot be denied the relief as sought for - Petition allowed.
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