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TMI Blog2019 (8) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... complete address as in the cause title of the writ petitions is shown in the cause list. This Court is informed that no counsel has entered appearance on behalf of third respondent Bank. Name of the third respondent Bank called out aloud thrice in the Court and adjoining corridors, but there is no response. 3. Be that as it may, contest in the instant writ petition is primarily between the writ petitioner and the first respondent Assistant Commissioner of Income Tax Department who has passed four orders of provisional attachment, two dated 05.04.2018, the other two dated 15.11.2017 and 04.04.2018, all bearing reference ACIT-CC- 2(4)/BCDPS4688G/281B/2017-18 (hereinafter 'impugned orders' in plural and 'impugned order' in singular for the sake of brevity). With regard to the second respondent, it comes to light that the second respondent, who is the jurisdictional Sub-Registrar, is only a formal party and has no real say in the instant matter. 4. In the aforesaid backdrop, main writ petitions are taken up, heard out and are being disposed of with consent of learned counsel for writ petitioner and Revenue Counsel for first respondent. 5. Impugned orders have been ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid 20.06.2019 proceedings, writ petitioner has filed a common additional affidavit dated 25.04.2019 in all the four writ petitions and an attempt has been made to explain this aspect of the matter i.e., a natural person's immovable properties being attached vide impugned orders and another juristic person questioning the same as writ petitioners in the instant writ petitions. This is in Paragraphs 3 and 4 of the additional affidavit, which read as follows: '3.I State that the petitioner - JSR Infra Developers Pvt. Ltd., was previously known as Vaibhav Infrastructure, before its incorporation as a registered company under the aegis of the Companies Act. 4. I State that the petitioner is a borrower having taken credit facilities from the 3rd respondent- Indian Overseas bank, wherein certain properties have been given as security to the 3rd respondent bank. The properties mortgaged with a 3rd respondent bank for the purpose of the loan availed by the petitioner primarily include properties that belongs to JSR infra developers private limited (previously) known as Vaibhav infrastructures), the petitioner herein and those properties that stand in the name of the directors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r whose immovable properties have been subjected to provisional attachment by impugned orders, should have come before this Court and assailed the impugned orders. The natural person i.e., individual J.Sekhar, being a Director in the writ petitioner company may not be a sufficient reason for the writ petitioner company to assail the impugned orders. The reason is fair, simple and straight. No elucidation and elaboration is required for the principle that a company is a juristic person and this juristic person is independent of the natural persons/individuals, who are Directors on the Board of the said company. It is also to be noted that even according to the writ petitions, the company has been represented by an Authorised Signatory one Mr.S.Karthikeyan and who is the deponent of the affidavits filed in support of these writ petitions. Therefore, in the considered view of this Court, this itself will put an end to the case of the writ petitioner in the instant writ petitions qua their campaign against the impugned orders. 12. However, in the light of the legal question that has been raised, which has been captured in the aforesaid proceedings dated 20.06.2019, this Court consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code.'' 3.There is, thus, no doubt that the rights of a secured creditor to realise secured debts due and payable by sale of assets over which security interest is created, would have priority over all debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or Local Authority. This section introduced in the Central Act is with ''notwithstanding'' clause and has come into force from 01.09.2016. 4.The law having now come into force, naturally it would govern the rights of the parties in respect of even a lis pending. 5.The aforesaid would, thus, answer question (a) in favour of the financial institution, which is a secured creditor having the benefit of the mortgaged property. 6.In so far as question (b) is concerned, the same is stated to relate only to 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 &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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