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of <h1>Court Overturns Mamlatdar Order in Property Charge Dispute, Prioritizes Secured Creditors over Section 137 Application.</h1> <h3>DAHOD URBAN CO-OPERATIVE BANK LTD Versus STATE OF GUJARAT & 2</h3> The court quashed the Mamlatdar's order rejecting the cancellation of mutation entry no. 1552, siding with the petitioner, a cooperative bank, over a ... - Issues:1. Petition to quash order rejecting cancellation of mutation entry.2. Dispute over charge on property between petitioner and Sales Tax Department.3. Legal validity of Mamlatdar's order based on Section 137 of Bombay Land Revenue Code.Issue 1: Petition to quash order rejecting cancellation of mutation entryThe petitioner, a cooperative bank, filed a petition seeking to quash an order by the Mamlatdar rejecting the cancellation of mutation entry no. 1552. The petitioner claimed that the respondent firm defaulted on repayment, leading to legal actions for recovery. Despite efforts to record the charge in its favor, the respondent authority did not act, resulting in a dispute over the mutation entry.Issue 2: Dispute over charge on property between petitioner and Sales Tax DepartmentThe petitioner contended that it held a prior mortgage on the property in question and objected to the charge registered by the Sales Tax Department. The Mamlatdar confirmed the charge in favor of the Sales Tax Department, prompting the petitioner to challenge the decision, asserting its priority as a secured creditor.Issue 3: Legal validity of Mamlatdar's order based on Section 137 of Bombay Land Revenue CodeThe petitioner argued that the Mamlatdar's order, relying on Section 137 of the Bombay Land Revenue Code, was unjust and illegal. Citing a previous judgment declaring Section 137 void concerning the preference of unsecured claims over secured debts, the petitioner sought to quash the order. The court, in line with the precedent, held that the Mamlatdar's decision could not stand, quashing the order and remanding the matter for a fresh decision within a specified timeframe.This judgment clarifies the legal principles governing disputes over property charges, emphasizing the priority of secured creditors over unsecured claims. The court's decision to quash the Mamlatdar's order highlights the importance of upholding legal precedents and ensuring decisions align with established legal standards.
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