TMI Blog2017 (8) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... riority over all debts, which would include, Government dues including revenues, taxes, etc.,. should hold good qua 2002 Act as well. We tend to agree with the submission advanced before me by the learned counsel for the petitioner Bank. Accordingly,the impugned attachment entry would have to be lifted. It is ordered accordingly. The writ petition is disposed of, based on an undertaking given by Mr.M.L.Ganesh, who appears for the petitioner Bank, that in case, the Revenue were to succeed in the SLP, the money realised from the sale of the subject properties would be disbursed to respondent No.1, in accordance with law. - W.P. No. 27504 of 2015 and M.P. Nos. 1 and 2 of 2015 - - - Dated:- 22-12-2016 - Rajiv Shakdher, J. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essors. 4.2. Pursuant to order dated 16.12.2016, the petitioner bank has filed an affidavit of even date 16.12.2016, which gives details of the properties, which have been sold and those which are yet to be sold. The details of properties, which have been sold are given in paragraph 3 of the said affidavit, while those which are yet to be sold are given in paragraph 6 of the said affidavit. 4.3. Pertinently, moneys received from the properties sold are given in paragraph 4 of the affidavit. For the sake of convenience, the said portion of the affidavit is extracted hereafter : 4. I further state that the petitioner bank for and on behalf of the consortium member banks received the following sale consideration from and out of sale o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged to it. 8. Concededly, the mortgage in favour of the petitioner Bank was created on 26.05.2005, which was prior to the date of attachment. The date of attachment, as indicated above, was 19.01.2015. To be noted, attachment entry was made by respondent No.3, on 13.08.2015. This apart, the matter is now put beyond the pale of doubt, as during the pendency of the writ petition, an amendment has been made to the 2002 Act with the insertion of Section 26E. For the sake of convenience, the said Section is extracted hereafter : 26E. Notwithstanding anything contained in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion. 9.1. Vide judgement dated 10.11.2016 passed in W.P.No.2675 of 2011, titled: The Assistant Commissioner (CT), Anna Salai-III Assessment Circle Vs. the Indian Overseas Bank rep. by its Manager, Recovery Administrative Branch, Central Office, and another, answered the reference, as follows : .... 2. We are of the view that if there was at all any doubt, the same stands resolved by view of the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016, Section 41 of the same seeking to introduce Section 31Bin the Principal Act, which reads as under:- 31B. Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o auction sales, which may be carried out in pursuance to the rights exercised by the secured creditor having a mortgage of the property. This aspect is also covered by the introduction of Section 31B, as it includes secured debts due and payable to them by sale of assets over which security interest is created. 7. We, thus, answer the aforesaid reference accordingly. (emphasis is mine) 9.2. As correctly argued by the learned counsel for the petitioner Bank, on a parity of reasoning, Section 26-Eof the 2002 Act construed likewise. In other words, not only should the amendment apply to pending lis, but the declaration that the right of a secured creditor to realize the secured debts, would have priority over all debts, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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