TMI Blog2018 (10) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... d between the petitioner and the second respondent clear that the rights of the secured creditors to realise secured debts due and payable to them by sale of assets over which the security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority - decided in favour of the financial institution, which is a secured creditor having the benefit of the mortgaged property. What are the status and the rights of a third party purchaser of the mortgaged property in question? - Held that:- The question is stated to relate only to auction sales, which may be carried out in pursuance to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 : Mr.R.Aravindan, Mr.Pala Ramasamy ORDER T. RAJA, J. This Writ Petition is filed by M/s.Manimuth Humanitarian Service Trust represented by its Managing Trustee C.M.Harirajan seeking Writ of Mandamus directing the Sub Registrar, Kinathukadavu, Coimbatore District, to remove the charge created in respect of Survey No.80/2, Nallatipalayam Village, Kinathukadavu Taluk, in favour of the second respondent by document No.27/2014, dated 29.12.2014, as per the dictum laid in UTI Bank vs. Deputy Commissioner of Central Excise reported in 2007 (1) LW 500 (FB). 2.The learned Counsel appearing for the petitioner would plead that M/s.BAPL Industries Ltd., have acquired property from one Smt.Gita Buradia, Smt.Asha Buradia and Smt.Nirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, Kinathukadavu, the third respondent has been made for a sum of ₹ 3,08,62,435/- on 29.12.2014 vide document No.27/2014. Since the said charge was created after six years and five months from the date of award passed by the Debts Recovery Tribunal, Coimbatore, i.e., on 16.05.2008, the rights of the secured creditor to realise the security debts due and payable by sale of assets over which security interest is created, shall have priority over all debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or Local Authority, as per the ratio laid down by the Full Bench of this Court reported in 2007(1) LW 500 (UTI Bank vs. Commercial Tax) . The learned Counsel for the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us and right of the third party purchaser of the mortgaged property in question. Therefore, when Section 31-B of the Act is answered to the doubt raised by the second respondent, Superintendent of Central Excise, Pollachi, the Writ Petition deserves to be allowed as prayed for by directing the Sub Registrar, Kinathukadavu, Coimbatore District, to remove the charge created in respect of S.F.No.80/2 situated at Nallatipalayam Village, Kinathukadavu Taluk, that stand in the name of the Superintendent of Central Excise, Pollachi. Concluding his arguments the learned Counsel for the petitioner would also refer to the judgment of the Apex Court in the case of Rana Girders Limited v. Union of India and others reported in (2013) 10 SCC 746 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment Department. In this context, it is relevant to refer to Section 31B of the Act, which is given as under: 31B. Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority. Explanation - For the purpose of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016, in cases where insolvency or bankruptcy proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority. In the present case, as we highlighted above, the petitioner being a bona fide purchaser has purchased the property brought by the bank in public auction held on 02.05.2017. Moreover, the crucial aspect to be borne by us is the date of attachment of the property in question by the bank on 22.07.2008. When the property in question was already attached by the fourth respondent bank after classifying the account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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