TMI Blog2016 (9) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... of the RR Act - possession of the rice mill including stocks taken over - Held that: - first charge over the dues has primacy over the dues of the Banks, Financial Institutions and Secured Creditors. It is not in dispute that the dues payable treated as arrears of land (public) revenue. The dues claimed by Telangana State Civil Supplies Corporation are subject to the statutory charge under Section 2 of the RR Act and therefore, they have the precedence over the dues claimed by the petitioner. It is only after the satisfaction of the dues of Telangana State Civil Supplies Corporation that the petitioner can recover its dues from out of the balance sale proceeds. In the Telangana State Civil Supplies Corporation is unable to recover the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of the Chief Judicial Magistrate, Karimnagar. WP.No.5008 of 2016 is filed by the Telangana State Civil Supplies Corporation (for short respondent No.1) for a Mandamus to declare Order, dated 21-07-2015, in Crl.M.P.No.132 of 2015 on the file of the Chief Judicial Magistrate at Karimnagar, as illegal and contrary to the Andhra Pradesh Revenue Recovery Act, 1864 (for short the RR Act) and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short the 2002 Act). The brief facts leading to filing of these Writ Petitions are stated hereunder: Respondent No.1 has entrusted 23156.40 quintals of paddy to respondent No.5 for custom milling and delivery of resultant rice to the FCI for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Mr.A.Jagan, learned Counsel for respondent No.1. The learned Counsel for respondent No.1 submitted that as respondent No.5- Mill failed to supply a substantial part of the resultant rice to the FCI, having received the paddy for custom milling, it was found liable to pay a sum of ₹ 1,04,23,732-78 ps representing the value of the undelivered rice of 4007.18 quintals and that therefore, at the instance of respondent No.1, respondent No.3 has initiated the proceedings under the RR Act. He has relied upon Section 2 of the RR Act and submitted that under the said provision, a statutory security for recovery of public revenue is created on the property and that therefore, the petitioner is not entitled to enforce its right under mortga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng inconsistent contained in any other law or instrument having effect by virtue of any other law. In other words, if there is no provision in the other enactments which are inconsistent with the DRT Act or the Securitisation Act, the provisions contained in those Acts cannot override other legislations. Section 38-C of the Bombay Act and Section 26-B of the Kerala Act also contain non obstante clauses and give statutory recognition to the priority of the States charge over other debts, which was recognized by Indian High Courts even before 1950. In other words, these sections and similar provisions contained in other State legislations not only create first charge on the property of the dealer or any other person liable to pay sales tax, e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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