Registered secured creditor priority prevails over later State tax attachment, protecting enforcement against the mortgaged asset.

A registered secured creditor's security interest under the SARFAESI framework prevails over a later State attachment and revenue lien on the same mortgaged property. The court applied the settled priority principle that State tax dues cannot defeat enforcement against a secured asset once the creditor's charge is duly registered and enforceable. On that basis, the attachment order and the consequential revenue entries were held unsustainable and were quashed and cancelled, leaving the secured creditor's enforcement rights intact.

---

---

Issues: Whether the attachment created by the State authorities over the mortgaged property could survive against the secured creditor's registered security interest under the SARFAESI framework, and whether the corresponding revenue entries were liable to be cancelled.

Analysis: The petitioner had created and registered its security interest over the property and had invoked enforcement under the SARFAESI Act. The dispute centered on the effect of the State's attachment and lien recorded later in point of time. The settled position applied was that, once the secured creditor's charge is registered and the statutory priority under the SARFAESI regime operates, the secured creditor's claim prevails over State dues and an attachment for tax arrears cannot defeat enforcement against the secured asset.

Conclusion: The attachment order and the consequential revenue entries could not be sustained and were liable to be quashed and cancelled in favour of the petitioner.

Final Conclusion: The secured creditor's enforceable and registered security interest prevailed over the State's claim, and the petition was disposed of by granting relief against the subsisting attachment and revenue encumbrance.

Ratio Decidendi: A registered secured creditor's priority under the SARFAESI Act prevails over subsequent State tax attachments on the secured property.

---