Attachment by the sales tax authorities over an apartment in...

Attachment by the sales tax authorities over an apartment in Mumbai - priority of charges - The High Court concludes that the petitioner, as the auction purchaser, holds a valid and marketable title to the apartment, free from encumbrances claimed by the sales tax authorities. This determination is based on the priority of security interests established under the SARFAESI Act. - Despite attachment orders issued by the sales tax authorities, the absence of registration with CERSAI and the failure to issue a proclamation of sale invalidate their claims to priority over the secured creditor. By analyzing relevant statutory provisions and legal precedents, the court clarifies that the sales tax authorities cannot supersede the rights of secured creditors.