TMI Blog2017 (1) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the petitioner. Therefore, there is no justification in not registering the Certificate of Sale issued by the Debt Recovery Tribunal and informing the petitioner to obtain No Objection Certificate from the Income Tax Department on the ground that pursuant to the communication / order dated 18/11/2011 issued by the Income Tax Department, the property in question is under attachment. As held by the Division Bench of this court in the case of Asset Reconstruction Company (India) Ltd. (2011 (9) TMI 1087 - GUJARAT HIGH COURT ) and even not disputed by the learned counsel appearing on behalf of the Income Tax Department, for the dues of the Income Tax Department, Income Tax Department cannot claim priority and/or cannot claim first charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the Sub-Registrar, Borsad has refused to register the Certificate for sale with respect to the property in question on the ground that the property in question is under attachment of the Income Tax Department. 2.00. Facts leading to the present Special Civil Application in nutshell are as under :- 2.01. That proceedings were initiated by Kotak Mahindra Bank, Ellisbridge, Ahmedabad against M/s. Gayatri Refoils Pvt. Ltd. and others before the Debt Recovery Tribunal for recovery of ₹ 2,63,78,462/-. The Debt Recovery Tribunal, Ahmedabad issued Recovery Certificate No.14 of 2009 in O.A. No.128 of 2001 against M/s. Gayatri Refoils Pvt. Ltd. and others. That the property in question being Open Plot No.4, Block / Survey No.1773/P, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration of sale can be taken. 2.06. Feeling aggrieved and dissatisfied with the impugned communications, the petitioner - purchaser of the property in question, who has purchased the property in question from public auction held and conducted pursuant to the order passed by the Debt Recovery Tribunal, has preferred the present Special Civil Application under Article 226 of the Constitution of India. 2.07. Mr.K.K. Desai, learned advocate appearing on behalf of the petitioner has vehemently submitted that the petitioner is the bonafide purchaser of the property in question who has purchased the property in question from public auction held and conducted pursuant to the order passed by the Debt Recovery Tribunal. 2.08. Mr.K.K. Desa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined as prior to the attachment order, the property in question is already sold in a public auction held and conducted by the Bank (secured creditor) pursuant to the order passed by the Debt Recovery Tribunal. It is submitted that therefore, the respondent No.4 is not justified in refusing to register Certificate of Sale with respect to the property in question issued by the Debt Recovery Tribunal solely on the ground that as per the communication of the Income Tax Department, the property in question is under attachment. 2.12. Mr.K.K. Desai, learned advocate appearing on behalf of the petitioner has heavily relied upon the decision of the Division Bench of this Court in the case of Asset Reconstruction Company (India) Ltd. Versus Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been purchased by the petitioner herein from public auction held by the Bank on 8/9/2011. That the petitioner has paid full amount of sale consideration of ₹ 23,25,000/- by 22/9/2011. Even Certificate of Sale has been issued by the Debt Recovery Tribunal in favour of the petitioner by Certificate dated 29/11/2011 pursuant to the auction has also been confirmed. Only that thereafter the property in question of the Director of M/s. Gayatri Refoils Pvt. Ltd. has been attached by the Income Tax Department for the dues of the assessee. Only thereafter property in question of the Director of M/s. Gayatri Refoils Pvt. Ltd. has been attached by the Income Tax Department for the dues of the assessee - Director of M/s. Gayatri Refoils Pvt. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iate authority is required to be directed to register the Certificate of Sale in favour of the petitioner. Therefore, there is no justification in not registering the Certificate of Sale issued by the Debt Recovery Tribunal and informing the petitioner to obtain No Objection Certificate from the Income Tax Department on the ground that pursuant to the communication / order dated 18/11/2011 issued by the Income Tax Department, the property in question is under attachment. 4.02. As held by the Division Bench of this court in the case of Asset Reconstruction Company (India) Ltd. (supra) and even not disputed by the learned counsel appearing on behalf of the Income Tax Department, for the dues of the Income Tax Department, Income Tax Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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