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2021 (12) TMI 1046 - BOMBAY HIGH COURTAttachment of secured assets - recovery of sales tax dues - Section 26-E of the SARFAESI Act and Section 31-B of the Recovery of Debts and Bankruptcy Act, 2002 - HELD THAT:- In the case of the Cosmos Cooperative Bank .v/s. State of Maharashtra and other [2019 (11) TMI 1689 - BOMBAY HIGH COURT], the Division Bench of this Court at the Principal seat at Bombay has held that on harmonious reading of Section 26-E of the SARFAESI Act and Section 37 of the MVAT Act it would be clear that the secured creditor would have a first charge over an asset and the charge created in favour of the State of Maharashtra under Section 37 of the MVAT Act would be subject to the first charge created by the Central Legislation namely, Section 26-E of the SARFAESI Act. In view of this settled legal position and in the background of the facts established in this case, the action initiated by the respondent Nos.1, 2 and 3 to the extent of two properties cannot be sustained. Petition allowed.
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