TMI Blog2017 (5) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... illage Kumbra, Tehsil Amloh, Mandi Gobindgarh, District Fatehgarh Sahib, in favour of petitioner as it has purchased the said property in the e-auction held on 28.02.2017 from the respondent-bank under Section 13(9) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, SARFAESI Act ). 2. A few facts relevant for the decision of the controversy involved as narrated in the petition may be noticed. A public sale notice dated 09.02.2017 was published in the newspaper Rozana Spokesman for the sale of the land of M/s Mata Multi Metals, Tehsil Amloh, District Fatehgarh Sahib as detailed above. The petitioner being interested to purchase the said land approached the bank respondent No.3 and sought information regarding the property being e-auctioned. The respondent bank gave the entire information regarding the land put on sale and assured the petitioner that the property was free from all types of encumbrances and charges. It was also intimated by the bank that the petitioner could participate in the e-auction which was going to be held on 28.02.2017 to purchase the property. It was further informed to the petitioner t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured creditor. The petitioner purchased the estamp worth ₹ 9,72,000/- on 27.03.2017 for registration of sale deed from the treasure bank for the State of Punjab i.e. Canara Bank, Amloh Road, Mandi Gobindgarh and after getting the sale deed drafted, presented the same before the concerned Sub-Registrar who refused to register the sale deed in the favour of the petitioner until the entry of Central Excise and Taxation Department was deleted from the revenue record. According to the petitioner, there was no information in the public sale notice regarding the pending dues of Excise and Taxation department. At every stage it was informed to the petitioner by the bank that the property was free from all encumbrances and charges. Thus, there was no statutory obligation on the part of the petitioner to discharge liability of outstanding dues of the previous owner. Further, as per Section 31B of the Recovery of Debts due to banks and Financial Institution Act, 1993 (in short, 1993 Act ), the rights of the secured creditor to realise the secured debts due and payable to them by sale of assets over which security interest was created shall have priority and shall be paid in priority ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Rules, 2002 are also recoverable from the previous owner. 5. We have heard learned counsel for the parties. 6. It is the admitted position that a public sale notice dated 09.02.2017 was published in the newspaper for the sale of the property in question. The petitioner being the highest bidder purchased the property in question in e-auction held on 28.02.2017 as per the terms and conditions of the e-auction. It deposited the entire requisite amount. Sale confirmation letter was also issued by the respondent bank under the Rules. After purchasing the property, the petitioner came to know from the office of Sub-Registrar that an amount of ₹ 5,79,000/- of the Central Excise department was pending towards the previous owner of the property i.e. M/s Mata Multi Metals. Thus, it was informed to the petitioner that the sale deed of the property could not be registered in its favour unless the entry in the revenue record regarding deposit of ₹ 5,79,000/- to the Central Excise department was deleted. The respondent bank after taking the entire sale consideration issued sale certificate to the petitioner under Rule 9(6) of the Rules wherein it was mentioned that the sale o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at of a subject meet at one and the same time, that of the Crown is in general preferred, the rule being detur digniori (Laws of England, 4th Edn. Vol.8, para 1076, at p.666). Herbert Broom states: Quando jus domini regis et subditi concurrunt jus regis praegerri debat- where the title of the kind and the title of a subject concur, the king s title must be preferred. In this case detur digniori is the rule .. where the titles of the kind and of a subject concur, the king takes the whole ..where the king s title and that of a subject concur, or are in conflict, the king s title is to be preferred/ (Legal maxims; 10th Edn., pp.35-36) This common law doctrine of priority of State s debts has been recognized by the High Courts of India as applicable in British India before 1950 and hence the doctrine has been treated as law in force within the meaning of Article 372(1) of Constitution. The relevant observation recorded by the Apex Court in M/s Rana Girders Limited's case (supra) read thus:- A harmonious reading of the judgments in Macson and Sicom would tend us to conclude that it is only in those cases where the buyer had purchased the entire unit i.e. th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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