First charge over immovable property prevails where sales tax dues have statutory priority over prior claim.

A claimed prior statutory charge over a debtor's immovable property was rejected where binding precedent had already held that sales tax dues enjoy a first charge under Section 38(C) of the Bombay Sales Tax Act. The petitioner relied on a certificate issued under Section 101 of the Maharashtra Cooperative Societies Act, but that basis did not displace the settled priority of the sales tax department's claim. The operative point was that the earlier precedent governed the issue and left no scope to accept the petitioner's asserted priority over the property.

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Issues: Whether the petitioner's claim of prior charge over the immovable property could prevail over the sales tax department's claim and whether sales tax dues constituted a first charge on the property.

Analysis: The petition was founded on a certificate issued under Section 101 of the Maharashtra Cooperative Societies Act and the petitioner's assertion of a prior statutory charge over the debtor's immovable property. The Court noted that the issue had already been answered against the petitioner in earlier binding precedent, where sales tax dues were held to constitute a first charge over the property by virtue of Section 38(C) of the Bombay Sales Tax Act. In view of that settled position, the petitioner's claimed priority could not be accepted.

Conclusion: The claim of prior charge was rejected and the sales tax dues were held to have first charge over the property, against the petitioner.

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