TMI Blog2018 (11) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... vement of the Government authorities to dispose of the property by auction sale. This would ensure that there is no further deterioration of the property and the incurring cost of security would also come to an end. Essentially therefore, the intention of the Court was to decide the internal dispute of secured creditor and the Government at a later point of time and not to withheld the disposal of the property till such disputes are resolved - Whatever be the outcome of the petition filed by the bank, the purchaser of the property through such auction sale conducted under the interim order of the Court, cannot be deprived full use and enjoyment of the property, that too after paying sizable sum to the tune of ₹ 13.30 crores. The Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raising outstanding VAT dues against the said entity. Union Bank of India filed Special Civil Application No.19839 of 2015 challenging the auction notice dated 04.11.2015 issued by the Assistant Commercial Tax Commissioner seeking to dispose of the said assets of M/s. Computer Skill Ltd. for recoveries of the VAT dues of the Government. The petitioner bank therein contended that the defaulter had borrowed money from the bank and other secured creditors by creating security interest in the immovable property which the VAT department wanted to sell. The case of the bank was that being a secured creditor, it had a prior charge over the property and in fact the possession of the property was also taken over by the bank in exercise of powers und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d unsolved, it would be open for either side to approach the Court. 7) It would be open for respondent no.1 or his authorised representative to remain present at the time of public auction. For such purpose, the petitioner shall intimate in writing to the State authorities, the proposed date, time and place of the auction. The petitioner shall provide, atleast seven clear days before the date of auction, copy of such notice to respondent no.1. 8) The sale proceeds upon eventual auction shall be kept by the petitioner bank in a separate account invested in the Fixed Deposit of recurring nature to be appropriated as per the directions of the Court that may be passed at the time of final hearing of the petition. 5. Pursuant t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d execute all necessary Application and other writings addressed to the said Authorities etc. for the purpose of transferring the said property in the name of Party of the Second Part. 6. The Revenue records of the property contains several charges including that of the VAT department, of the Panchayat and of the Provident Fund Commissioner. Despite the efforts from the petitioner, the VAT department's charge and that of the Provident Fund Commissioner, could not be removed, upon which, this petition came to be filed. 7. Few things immediately emerge from the record. The Court is in seisin of the main petition filed by the bank in which, the primary dispute is whether the bank as a secured creditor would have a priority charg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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