Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2021 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 1388 - HC - VAT and Sales TaxPriority of charges over the property - Direction to clear the lien note given on the revenue Record of bid property and transfer the same in the name of the petitioners, within short stipulated time - seeking direction to pay 18% interest on the initial bid amount taken by them from petitioners - HELD THAT:- It is not been dispute by the State that the issue involved in this writ petition is, in fact, covered by the judgment in PUNJAB NATIONAL BANK AND ORS. VERSUS STATE OF HIMACHAL PRADESH AND ORS. [2021 (5) TMI 1026 - HIMACHAL PRADESH HIGH COURT], where it was held that this Court has no hesitation in holding that the petitioners being "Secured Creditors" have preference over the respondent-State with regard to the debts due from respondent No. 4. - therefore, this writ petition is allowed by holding that the findings returned in the mentioned case shall mutatis mutandis apply to this petition. This writ petition is disposed of by holding that the findings in the case of PUNJAB NATIONAL BANK AND ORS. shall mutatis mutandis apply to this petition also and the Bank being “Secured Creditor”, has preference over the respondent- State with regard to the debts due from the private respondent(s) and the loanee cannot claim first charge over secured assets of the loanee, as the Bank has first charge over the secured assets, in view of the provisions of the SARFAESI Act, 2002 and Recover of Debts and Bankruptcy Act, 1993, as amended from time to time. It is further held that the provisions of Section 26 of the H.P. Vat Act, 2005 shall have to give way to the provisions of Section 26E of the SARFAESI Act, 2002 and Section 31B of the RDB Act, 1993. The respondent No.1 is directed to issue the Sale Certificate, in favour of the petitioners and respondents No.2 and 3 are directed to clear the lien note (Rapat No.628) given on the revenue record of bid property and transfer the same in the name of the petitioners, within short stipulated time - application disposed off.
|