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2020 (2) TMI 1059 - HC - VAT and Sales TaxValidity of Auction Notice - Restraint from Auction of assets - claim of charge towards secured assets - default in repayment of the credit facilities - account having been classified as Non Performing Asset (NPA) -whether the state can put forward its claim of first charge over the secured assets of the borrower or the Bank would have the first charge? - HELD THAT:- The issue is no longer res-integra in view of the pronouncement of this Court in the case of Kalupur Commercial Co-operative Bank Ltd. vs. State of Gujarat [2019 (9) TMI 1018 - GUJARAT HIGH COURT]. This Court has ruled that the Bank will have the first charge over the secured assets of the original borrower & such a claim cannot be defeated by virtue of Section 48 of the VAT Act. No further adjudication of this writ application is necessary. The Bank was permitted to put the secured assets of the original borrower to auction and the auction proceedings have attained finality - application disposed off.
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