TMI Blog2008 (8) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... has no locus standi to challenge the order of confiscation as the respondent no. 4 has already preferred an appeal against it. However, if in appeal preferred by respondent no. 4, the order of confiscation is set aside then the Bank can proceed against the properties in question in accordance with law. - 1464 of 2008 - - - Dated:- 5-8-2008 - R.K. Agrawal and Sabhajeet Yadav, JJ. [Order]. - We have heard Shri Tarun Verma, learned counsel for the petitioner and Shri Ajai Bhanot, learned counsel appearing for respondent nos. 1, 2 and 3. 2.By means of the present writ petition, the petitioner Punjab National Bank, Ghaziabad has sought a writ, order or direction in the nature of certiorari quashing the letter/communications dated 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It appears that respondent no. 4 had indulged in evasion of excise duty whereupon proceedings were taken by the Central Excise Department and adjudication Order-in-Original No. 15/Commr/GZB/2007 dated 26-3-2007 and Order-in-Original No. 20/Commr/GZB/2007 dated 29-3-2007 have been passed whereby the movable and immovable assets of the respondent no. 4 have been confiscated. It has come on record that against the Order-in-Original dated 26-3-2007 and 29-3-2007, respondent no. 4 had preferred an appeal, which is still pending and in which no interim order has been passed. When the proceedings were taken by the Bank for taking over the possession of the immovable properties of the respondent no. 4 an objection was raised by the Assistant Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in the Central Excise Act as well as in Customs Act the claim of secured creditor will prevail over Crown's debts. Similar view has been taken by the Apex Court in the case of Central Bank of India (supra). 6.We have given our anxious consideration to the various plea raised by the learned counsel for the petitioner. We find that in the present case, taxes are not sought to be recovered from M/s. Rathi Ispat Ltd., respondent no. 4, by way of attachment or otherwise from the movable and immovable assets of respondent no. 4 but the stand of the Central Excise Authorities is that the properties stands confiscated and vests in the Central Government as a result of the order of confiscation. 7.According to Bouvier's Law Dictionary, A Conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fiscation of any property used in the crime as, for example, a truck. Confiscation differs from Eminent Domain and condemnation in that the person from whom private property is taken is not compensated for its value at the time of confiscation". 11.From the meaning of tie word "confiscate/confiscation", we find that if any property has been confiscated it vests in the State and no person can claim any right, title or interest over it. 12.In this view of the matter, the question of first charge or the second charge over the properties would not arise. The debt does not get extinguished but it cannot be recovered from the confiscated property. That being the position, we do not find any merit in the writ petition. So far as the challeng ..... X X X X Extracts X X X X X X X X Extracts X X X X
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