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2022 (6) TMI 1471 - HC - VAT and Sales TaxRecovery of dues - priority of dues - first charge over the property mortgaged by the respondents No.4 to 7 under Section 26-E SARFEASI Act or not - HELD THAT:- The writ-applicant Bank undisputedly auctioned the subject property on 25.2.2021 and PRA Realities LLP being the highest bidder submitted the bid of Rs.3,41,00,000/- and in accordance with the sale notice has deposited the entire amount as per the Rules. The writ-applicant Bank is the secured creditor and having auctioned the subject property under the SARFEASI Act, the writ-applicant would have first charge over the subject property. The ratio as laid down in PATTECH FITWELL TUBE COMPONENTS VERSUS THE STATE OF GUJARAT [2022 (6) TMI 202 - GUJARAT HIGH COURT] squarely covers the present issue. The dues of the secured creditor i.e. writ-applicant Bank shall have priority over the dues of the respondent No.2 over the subject property. In the facts of the present case, in the revenue records undisputably the charge of respondent No.1 is at a later point of time i.e. 14.12.2015 and 7.6.2018 which is subsequent to the mortgage with the writ-applicant Bank i.e. 8.6.2012 and 26.10.2013, being the secured creditor. In view of above, as per the provisions of Section 26-E SARFEASI Act also, the balance tilts in favour of the writ-applicant Bank and then in favour of the present writ-applicant. Accordingly, there is no hesitation in holding and declaring that the respondent No.1 State authorities cannot claim first charge over the subject property. It is hereby directed that the writ-applicant shall have the first charge over the property mortgaged by the respondents No.4 to 7 under Section 26-E SARFEASI Act and the same would overwrite the charge of the respondent No.3 under Section 48 of the GVAT, 2003. The respondent authority is further directed to post and certify a mutation entry to record the certificate of sale dated 19.3.2021 for the subject land. The writ-application succeeds and is hereby allowed.
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