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2017 (1) TMI 742 - SC - Indian LawsSale Notification issued by the appellant Bank under the provisions of the SRFAESI Act, 2002 - whether was in infraction of Section 187 of the Tripura Land Revenue and Land Reforms Act, 1960 as under the Tripura Act there is a legislative embargo on the sale of mortgaged properties by the bank to any person who is not a member of a scheduled tribe - The auction purchasers in the present case happened to be the persons who are not members of any scheduled tribe - Restepping by the provisions of the State Act dealing with land reform into an area of banking covered by the Central Act - which is the dominant legislation having regard the area of encroachment? Held that:- The Act of 2002 is relatable to the Entry of banking which is included in List I of the Seventh Schedule. Sale of mortgaged property by a bank is an inseparable and integral part of the business of banking. The object of the State Act, as already noted, is an attempt to consolidate the land revenue law in the State and also to provide measures of agrarian reforms. The field of encroachment made by the State legislature is in the area of banking. So long there did not exist any parallel Central Act dealing with sale of secured assets and referable to Entry 45 of List I, the State Act, including Section 187, operated validly. However, the moment Parliament stepped in by enacting such a law traceable to Entry 45 and dealing exclusively with activities relating to sale of secured assets, the State law, to the extent that it is inconsistent with the Act of 2002, must give way. The dominant legislation being the Parliamentary legislation, the provisions of the Tripura Act of 1960, pro tanto, (Section 187) would be invalid. It is the provisions of the Act of 2002, which do not contain any embargo on the category of persons to whom mortgaged property can be sold by the bank for realisation of its dues that will prevail over the provisions contained in Section 187 of the Tripura Act of 1960. The decision of this Court in Central Bank of India vs. State of Kerala and Ors. (2009 (2) TMI 451 - SUPREME COURT OF INDIA) holding that the provisions of the Bombay Sales Tax Act, 1959 and the Kerala General Sales Tax Act, 1963 providing for a first charge on the property of the person liable to pay sales tax, in favour of the State, is not inconsistent with the provisions contained in the Recovery of Debts Due to Banks and Financial Institutions, Act 1993 (for short the “DRT Act”) and also the Act of 2002 must be understood by noticing the absence of any specific provision in either of the Central enactments containing a similar/parallel provision of a first charge in favour of the bank. The judgment of this Court holding the State enactments to be valid and the Central enactments not to have any overriding effect, proceeds on the said basis i.e. absence of any provision creating a first charge in favour of the bank in either of the Central enactments. Taking into account the averments made in the said affidavit, we find that the sale proclamation had mentioned a reserve price of ₹ 275 lacs and the property had been actually sold by auction at ₹ 416 lacs. That apart, the valuation report dated 14.06.2012 of the approved valuer valuing the property at ₹ 341.15 lacs has also been placed before us by way of an additional document which we are inclined to take on record. The requirements under Rule 5 and Rule 8(5) have, therefore, been complied with and the sale proclamation and the sale effected pursuant thereto cannot be invalidated on the above ground. For the aforesaid reasons, the impugned order passed by the High Court has to be set aside which we hereby do. The appeals are consequently allowed
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