TMI Blog2022 (5) TMI 1360X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 - GUJARAT HIGH COURT] , the bank will have the first precedence and the department cannot put forward its claim for the purpose of recovering the dues towards VAT. What came to be purchased by the writ-applicant in the auction proceedings conducted by the Bank of Baroda was a secured asset under the provisions of the SARFAESI Act. In such circumstances, the State cannot claim preference over the subject property for the purpose of recovery of the dues towards tax. It is not in dispute that the first charge was created in favour of the bank and the bank in exercise of its powers under the SARFAESI Act, put the subject property to auction. It is hereby declared that the State cannot claim any first charge over the subject property on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject property forthwith, being an auction purchaser of the subject property, pending admission, hearing and final hearing of the present petition in the interest of justice; (C) Be pleased to grant such other and further reliefs as may be deemed fit and proper by this Hon ble Court, in the interest of justice; 2. We need not delve much into the facts of this litigation as the issue involved is in a very narrow compass and no longer resintegra in view of the two pronouncements of this High Court as under: (1) Bank of India vs. State of Gujarat and others [Special Civil Application No.13863 of 2014; decided on 21st January 2020]. (2) Kalupur Commercial Co-operative Bank Ltd. vs. State of Gujarat [Speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of the bank that in accordance with the provisions of the SARFAESI Act, more particularly, Section-26E and also, in view of the two pronouncements of this High Court one in the case of Bank of India vs. State of Gujarat and others ; and another in the case of Kalupur Commercial Co-operative Bank Ltd. vs. State of Gujarat , the bank will have the first precedence and the department cannot put forward its claim for the purpose of recovering the dues towards VAT. 7. We quote the relevant paragraphs of the judgment rendered in Kalupur Commercial Co-operative Bank Ltd. (supra) as under: 54. In view of the aforesaid discussion, We have no hesitation in coming to the conclusion that the first priority over the secured asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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