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2018 (3) TMI 1918 - HC - VAT and Sales TaxRegistration of sale certificate - priority of secured creditors over all other dues - cancellation on the ground that the Commercial Tax Department has created an encumbrance on the property - HELD THAT:- The decision of the Full Bench in the case of Assistant Commercial Tax Officer (CT) V. Indian Overseas Bank [2016 (12) TMI 373 - MADRAS HIGH COURT] squarely answers the legal issue, wherein, it has been held that the secured creditor is entitled to realise secured debts due and payable by sale of assets over which security interest is created and would have priority over all debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or Local Authority. Therefore, the impugned order has to be held to be unsustainable in law. The first respondent is directed to register the sale certificate after deleting the encumbrance created at the instance of the Commercial Tax Department and the sale certificate shall be registered in favour of the third respondent, within a period of one week from the date of receipt of a copy of this order - Petition allowed.
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