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2021 (6) TMI 150 - HC - VAT and Sales TaxSeeking registration of Sale Certificate in respect of the schedule mentioned property by the petitioner Bank - HELD THAT:- The legal issue involved in this writ petition is no longer res integra and has been considered in several decisions of this Court and the latest of which being in the case of TAMILNAD MERCANTILE BANK LIMITED VERSUS THE JOINT I SUB REGISTRAR, M/S. TOUGH BAGS, LALITHA RAMALINGAM, R. PALANIAPPAN, R. THIRUMALAIAPPAN, SAKTHIMALA, M. UDAYARAJAN, HEMALATHA, SHRIRAM TRANSPORT FINANCE COMPANY LTD. [2021 (1) TMI 1118 - MADRAS HIGH COURT] where it was held that the petitioner Bank cannot be denied the relief as sought for. In such view of the matter, both the writ petitions stand allowed. The first respondent in both the writ petitions are directed to register the sale certificates issued by the petitioner Bank in favour of the respondents. The right of the Commercial Tax Department qua the secured creditor was subject matter of consideration by the Full Bench in the case of Assistant Commissioner (CT), Anna Salai-III Assessment Circle Vs. Indian Overseas Bank [2016 (12) TMI 373 - MADRAS HIGH COURT] and it was held that the secured creditor namely the Bank will have precedence over the dues payable to the Commercial Tax Department. The Sub Registrar has to necessarily delete the schedule mentioned property attachment reflected in the encumbrance certificate at the instance of the commercial tax department. In the result, the writ petition is allowed. It is made clear that though the attachment at the instance of the first respondent Commercial Tax Department has been directed to be deleted, it will not in any manner affect the department's right to collect the dues from the default assessee by proceeding in accordance with law - Petition allowed.
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