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2019 (12) TMI 633 - HC - VAT and Sales TaxAuction - outstanding dues - priority of the charge - statutory charge in favour of the Sales Tax Department - Right to proceed against the secured asset by taking recourse to SARFAESI 2002 - Section 37 of the Maharashtra Value Added Tax - Section 26E of SARFAESI 2002 - HELD THAT:- A perusal of Section 37 of MVAT Act, 2002 reveals that though it commences with a non-obstante clause, but it recognizes that the same shall be subject to any provision regarding creation of the first charge in any Central Act. Therefore, if, by virtue of any provision under a Central Act, any priority or charge is created in favour of any party the same shall prevail - Section 31B in RDB Act 1993 was introduced by an Amendment in the year 2016 and was brought into force on 2nd September 2016. The non-obstante clause in the Section thus overrides any other law for the time being in force. The Section accords priority No.1 to secured creditors with respect to the secured assets. The only contention which needs to be noted which was made by learned counsel for Respondent Nos. 1 and 2 which was not made before the four learned Benches of the four High Courts in their opinions above noted, is that Chapter IVA which was inserted in SARFAESI 2002 comprising Sections 26B to 26E warrants a record to be made in the Central Register by the Central Registry creating a security interest - The argument is without any substance because the law declared in the four opinions above referred to is that if any Central Statute creates priority of a charge in favour of a secured creditor, the same will rank above the charge in favour of a State for a tax due under the Value Added Tax of the State. The sale proceeds realized are directed to be released to the petitioners by the Prothonotary & Senior Master of this Court together with such interest which has accrued thereon - Petition allowed.
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