Non-paid dues of Sales Tax department do not constitute a first...

Non-paid dues of Sales Tax department do not constitute a first charge over property. The first charge belongs to Secured Creditors or the State/Central Government (Crown's debt). Bonafide purchasers who acquired properties through auctions following loan defaults by predecessors hold valid titles. The charge of a Secured Creditor precedes an Unsecured Creditor's (Crown's debt) charge. State authorities cannot reject mutation applications by auction purchasers. Delay is irrelevant as purchasers have invested substantial amounts and acquired valid titles through Sale Certificates. Authorities are directed to mutate purchasers' names in revenue records by quashing State's attachment/charge, as Banks held the first charge. Petitions allowed.

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