https://www.taxtmi.com/caselaws?id=300696 A prior mortgagee's security interest prevailed over a later Commercial Tax Department attachment, because the State Financial Corporation's rights arose earlier and the property was sold under section 29 of the State Financial Corporation Act. The purchaser acquired title free from encumbrances under section 29(2), and the borrower's pending BIFR proceedings also meant the earlier tax attachment had no legal effect under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. Government tax dues could not override the secured creditor's prior mortgage or be enforced against the purchaser's property. The attachment and sealing were therefore without jurisdiction, and the notice of attachment and seizure memo were quashed. en-us Tue, 19 Aug 2008 00:00:00 +0530 Sat, 19 Feb 2022 12:43:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=300696 A prior mortgagee's security interest prevailed over a later Commercial Tax Department attachment, because the State Financial Corporation's rights arose earlier and the property was sold under section 29 of the State Financial Corporation Act. The purchaser acquired title free from encumbrances under section 29(2), and the borrower's pending BIFR proceedings also meant the earlier tax attachment had no legal effect under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. Government tax dues could not override the secured creditor's prior mortgage or be enforced against the purchaser's property. The attachment and sealing were therefore without jurisdiction, and the notice of attachment and seizure memo were quashed. Case-Laws Indian Laws Tue, 19 Aug 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=300696