TMI Blog2018 (12) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... nment dues including revenues, taxes, cesses and rates due to the Central Government, State Government or Local Authority - Hence it clearly emerges that the revenues, taxes, cesses and rates due to the Central Government, State Government or a Local Authority shall not have precedence or preference over the dues recoverable by a secured creditor by sale of secured asset. Moreover, it is an admitted fact herein that the respondent-bank had auctioned the property in question under the Act being a secured asset, duly mortgaged in their favour by the previous owner, to secure the credit facilities allowed by the respondent-bank. In M/s Rana Girders Limited vs. Union of India and others, [2013 (8) TMI 540 - SUPREME COURT], the Apex Court hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st Act, 2002 (for brevity 'the Act'). It was submitted on behalf of the petitioner that at the time of the e-auction the property was stated to be free from all encumbrances as per the information provided by the respondent-bank. 2. Brief facts, which would be relevant for the decision of the present controversy as noticed in the petition are that a public notice for auction of various properties including the present one in question was published in the newspaper 'The Tribune' dated 27.08.2016. The petitioner evinced interest to purchase the said property and approached the respondent-bank seeking information regarding the property being put to e-auction. The respondent-bank provided the petitioner complete information r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent No.4 on the other. Hence, respondent No.2 could not have refused the registration of the sale certificate simply on the ground of attachment of the said property. 3. In the reply filed by respondents No.1 and 2, it has been inter alia stated that the answering respondents were duty bound to comply with the orders of the Civil Courts as well as of the Government, as reflected in the revenue record. 4. Respondents No.4 to 6 have also filed their separate reply stating therein that they had auctioned the property on As is, where is basis and thus, are not liable for any eventuality and hence, have prayed for dismissal of the instant petition. 5. Heard learned counsel for the parties and perused the paper book with their ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h may have existed. 7. Section 31B of the Act as amended w.e.f. 16.08.2016 reads as under: 31B. Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to realize 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. 8. A perusal of the above provision leaves no manner of doubt that the rights of a secured creditor to realise secured debts due and payable to them by sale of assets over which security interest is created, shall h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igniori 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. 11. In M/s Rana Girders Limited vs. Union of India and others , (2013) 10 SCC 746 , the Apex Court held that the subsequent purchaser could not be burdened with the liability relating to the dues of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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