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2018 (11) TMI 148 - HC - VAT and Sales TaxVAT department's charge and that of the Provident Fund Commissioner - petitioner's grievances are that despite clear position of facts and law, the charge of the State VAT department and the alleged outstanding dues of the Provident Fund Commissioner from the Revenue records is not being removed. Whether the bank as a secured creditor would have a priority charge over the secured assets or whether the VAT department can claim preferential recoveries as a crown debt? Held that:- Since the resolution of this issue was likely to take some time, the Court permitted the bank with the active involvement of the Government authorities to dispose of the property by auction sale. This would ensure that there is no further deterioration of the property and the incurring cost of security would also come to an end. Essentially therefore, the intention of the Court was to decide the internal dispute of secured creditor and the Government at a later point of time and not to withheld the disposal of the property till such disputes are resolved - Whatever be the outcome of the petition filed by the bank, the purchaser of the property through such auction sale conducted under the interim order of the Court, cannot be deprived full use and enjoyment of the property, that too after paying sizable sum to the tune of ₹ 13.30 crores. The Revenue authorities shall delete the charge of the VAT department as well as that of the Provident Fund Commissioner - petition disposed off.
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