TMI Blog2018 (12) TMI 1704X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 - - - Dated:- 18-12-2018 - MR. JUSTICE R. SUBBIAH AND MR. JUSTICE B. PUGALENDHI For the Petitioner : Mr. N. Dilip Kumar For the Respondent No.1 : Mr. M. Murugan Government Advocate For the Respondent No.5 : Mr. A. Kapaleeshwaran, M/s. V.K. Associates For the Respondent Nos.2,3, 4 : No appearance ORDER [Order of the Court was made by R. SUBBIAH, J.] Challenge in this Writ Petition is to the attachment entry registered on 06.02.2017 in Index II on the file of the first respondent in response to the order of attachment issued by the Seventh Additional Court, Chennai, in I.A.No.728 of 2017 in O.S.No.270 of 2017, in favour of the fourth respondent and issue a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey neither replied to the said notices nor repaid the outstanding loan amounts. Therefore, the petitioner bank proceeded to issue a sale notice on 15.02.2017 seeking to bring the secured asset for auction sale on 09.02.2018. The fifth respondent herein was the successful bidder and the entire sale consideration was paid by the petitioner on 26.02.2018 itself. Accordingly, the petitioner bank issued sale certificate on 20.03.2018 in favour of the fifth respondent and when the same was submitted for registration before the first respondent, he orally refused to register the sale certificate citing impugned adverse encumbrance entry in respect of the subject property. In this regard, the petitioner bank submitted a representation to the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 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 proceedings are pending in respect of 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmencement of the Insolvency and Bankruptcy Code, 2016, in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code. 5. In the light of the judgment of the Full Bench of this Court reported in 2016 (6) CTC 769 (cited supra) and on a conjoint reading of Section 26-E of the SARFAESI Act and Section 31-B of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, there cannot be any doubt that the rights of a secured creditor to realise the debts due and payable by sale of assets over which security interest is created, would have priority over all debts and Government due ..... X X X X Extracts X X X X X X X X Extracts X X X X
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