TMI Blog2017 (10) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... in the name of respondent No.3 / the guarantors. Therefore, the question of Section 26-E of the Act being prospective or retrospective does not arise as regards the assets, which remained intact without being sold by any creditor as on the date of coming into force of the said provision. Therefore, the petitioner has priority over all other debts including revenues, taxes, cesses, etcetera payable to the Central or State Governments or local authorities. The demand made by respondents 1 and 2, impugned in this Writ Petition, is declared as illegal and unenforceable - petition allowed. - Writ Petition No. 12819 of 2017 - - - Dated:- 31-10-2017 - Sri C. V. Nagarjuna Reddy And Sri Challa Kodanda Ram JJ. For the Petitioner : Sri K. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against respondent No.3 and its guarantors / mortgagors. Aggrieved by the notice issued under Section 13(2) of the said Act, the borrower / mortgagors / guarantors have filed S.A. No. 306 of 2014 and S.A. No. 74 of 2015 before the Debts Recovery Tribunal, Visakhapatnam and the same are pending; and that the Andhra Bank, Rayavaram Branch has filed O.S. No. 263 of 2016 before the Debts Recovery Tribunal, Visakhapatnam and the same is also pending. The petitioner further pleaded that the creditor i.e. Andhra Bank, Rayavaram Branch, East Godavari District has assigned the debt of respondent No.3 in favour of the petitioner under Assignment Agreement dated 30.06.2016, which was registered as document No. 5539 of 2016 on 28.10.2016 in the offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther creditor or filing of attachment orders under this Chapter shall be deemed to constitute a public notice from the date and time of filing of particulars of such transaction with the Central Registry for creation, modification or satisfaction of such security interest or attachment order, as the case may be. (2) Where security interest or attachment order upon any property in favour of the secured creditor or any other creditor are filed for the purpose of registration under the provisions of Chapter IV and this Chapter, the claim of such secured creditor or other creditor holding attachment order shall have priority over any subsequent security interest created upon such property and any transfer by way of sale, lease or assignmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent No.3 prior to the said provision coming into force, the petitioner cannot claim priority. We have carefully considered the respective submissions of the learned counsel for the parties. From the above re-produced provisions, it is abundantly clear that after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses, etcetera. It is not in dispute that the assets, over which security interest is created by way of registration originally in favour of the Andhra Bank which was later assigned to the petitioner, are still standing in the name of respondent No.3 / the guarantors. Therefore, the question of Section 26-E of the Act bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
